(Updates with afternoon trading, Trump tariff delay)

By Harry Robertson and Amanda Cooper

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

Monday little changed, ignoring gyrations in the currency

market, as investors reacted to news that the incoming U.S.

administration under Donald Trump would not impose trade tariffs

yet.

Trump was being sworn back in as president at midday (1700

GMT) in Washington after four years away and has promised a

flurry of executive actions concerning immigration, energy and

tariffs early in his presidency.

The dollar fell particularly sharply against the euro,

Chinese yuan, Mexican peso and Canadian dollar after an official

confirmed a Wall Street Journal report citing a summary of a

Trump memo that stopped short of imposing new tariffs on day

one.

With U.S. bond and stock markets closed for Martin

Luther King Jr Day, euro zone debt markets proved less volatile.

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

the euro zone, finished the day down 1 basis point (bp) at

2.494%, below last week's seven-month high at 2.630%. Yields

move inversely to prices.

According to the official, rather than impose tariffs

immediately, Trump will instead direct agencies to investigate

and remedy persistent trade deficits and address unfair trade

and currency policies by other nations.

"Conspicuous by their absence are actual tariffs, which

suggests that a programme of tariffs is still under debate by

Trump and his team," XTB research director Kathleen Brooks said.

Italian 10-year yields were down nearly 3

bps at 3.614%, leaving their premium over German yields

at 116 bps, slightly narrower on the day.

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.

They fell back last week after data showed underlying U.S.

inflation had slowed more than expected in December.

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

to European Central Bank rate expectations, was down 1 bp at

2.22%.

Investors are also watching the progress of the Israel-Hamas

ceasefire that took effect on Sunday. Hamas released three

Israeli hostages and Israel released 90 Palestinian prisoners on

day one of the truce.