LONDON, Oct 31 (Reuters) - Euro zone bond yields rose to

multi-week highs on Thursday as traders processed a series of

developments around the world each largely pointing to a slower

pace of central bank rate cuts.

Germany's 10-year yield, the benchmark for the euro zone,

rose as much as 5 bps to 2.425%, its highest since late July.

Its two-year yield was 3 bps firmer at 2.31%, its highest since

early September.

German retail sales rose more than expected in September,

data showed on Thursday, reinforcing the effect of Wednesday's

numbers showing the euro zone's largest economy unexpectedly

grew in the third quarter and that inflation rose more than

expected in October.

Europe-wide inflation data is due at 1000 GMT.

Italy's 10-year yield rose 7 bps to 3.64%, also its highest

since early September, pushing the spread between Italian and

German yields slightly wider to 126 bps.

Elsewhere the Bank of Japan maintained ultra low interest

rates as expected, but stressed its resolve to keep hiking

borrowing costs if the economy sustains a moderate recovery.

On Wednesday Britain's gilt yields rose across the curve and

the premium investors demand to hold UK rather than German debt

hit its highest since August 2023 as investors digested

Britain's new budget.

The budget is set to raise borrowing, spending and taxes,

causing markets to push back bets on Bank of England rate cuts.

In the U.S., yields rose after strong economic data,

continuing recent increases as traders position for a potential

second Donald Trump presidency.