LONDON, Jan 20 (Reuters) - Euro zone bond yields eased

in early trading on Monday, with investor focus on the

inauguration of Donald Trump as U.S. president and the raft of

executive orders he has pledged to sign on day one.

Trump will be sworn back in as president at midday (1700

GMT/1800 CET) in Washington, D.C. after four years away and has

promised a flurry of executive actions concerning immigration,

energy and tariffs early in his presidency.

Germany's 10-year bond yield, the benchmark for

the euro zone bloc, slipped 1.1 basis points (bps) to 2.49% in

early trading. Yields move inversely to prices.

U.S. bond and stock markets are closed for Martin Luther

King Jr. Day.

"(The) market is waiting for the host of executive orders

that are likely to be signed in the first day of the Trump

presidency," said Mohit Kumar, European economist at Jefferies.

"Focus would be on policies around tariffs, immigration and

deregulation."

Italy's 10-year yield was lower by 1 bp at

3.63%, and the gap between Italian and German yields

stood at 113.6 bps.

Bond yields around the world rose sharply to multi-month

highs in the first two weeks of the year as strong U.S. economic

data pushed up U.S. Treasury yields, which tend to drive

markets, and investors worried about the potentially

inflationary effect of Trump's tariffs.

Yet they fell back last week after data showed underlying

U.S. inflation slowed more than expected in December.

Germany's two-year bond yield, which is sensitive

to European Central Bank rate expectations, was down 1.3 bps at

2.22%.

Investors were also watching the progress of the

Israel-Hamas ceasefire which took hold on Sunday. Hamas released

three Israeli hostages and Israel released 90 Palestinian

prisoners on day one of the truce.

(Reporting by Harry Robertson; Editing by Emelia

Sithole-Matarise)