(Updates moves, adds analyst comment and context)

By Linda Pasquini

May 29 (Reuters) - Euro zone government bond yields

inched up on Thursday, as investors ditched safe havens for

riskier assets after a U.S. federal court blocked most of

President Donald Trump's sweeping tariffs.

Investors moved away from bonds, gold, and safe-haven

currencies such as the yen and Swiss franc after the

Manhattan-based Court of International Trade ruled on Wednesday

that Trump overstepped his authority by imposing

across-the-board duties on imports from the United States'

trading partners.

The Trump administration has appealed the ruling, which does

not include sectoral levies, and could seek other legal avenues

for Trump to impose tariffs.

"(The court ruling) removes some uncertainty, but it adds

some," said Kenneth Broux, head of corporate research FX and

rates at Societe Generale.

Though the news provided a relief boost to stocks and

the dollar, he said, the situation nonetheless remained very

unpredictable.

Germany's 10-year government bond yield, the

euro area benchmark, rose 3.5 basis points (bps) to around

2.58%. It fell to around 2.51% on Tuesday, its lowest level

since May 8.

"What we are seeing is some dispersion in bond markets,"

Broux said, with the recent rise in yields highlighting not only

supply and demand constraints but also fiscal dynamics.

Long-term bond yields have risen this month on growing

concern about rising debt levels among big economies such as the

United States and Japan.

German 30-year government bond yields edged up

nearly 4 bps to around 3.08%, while the 2-year government bond

yield, more sensitive to European Central Bank policy

rates, rose 2 bps to 1.82%.

Markets have fully priced in a 25-bps interest rate cut from

the ECB when it meets next week.

They also indicated a deposit facility rate at 1.71%

in December, from 1.55% in mid-April.

Italy's 10-year yield rose 3 bps to 3.58%,

leaving the spread between Italian and German yields

around 97 bps.

U.S. Treasury yields also rose on the day, with the yield on

the benchmark 10-year Treasury note up over 5 bps to

4.533%.