(Updates with European morning trade)

LONDON, July 8 (Reuters) - Germany's longer-dated bond

yields hit six-week highs on Tuesday, as an absence so far of

additional U.S. tariffs on the European Union left markets to

focus on European spending and borrowing.

That attention on borrowing was underscored on Tuesday by a

series of bond auctions in Europe, while a rise in Japanese

yields added further pressure to euro zone bonds.

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

6 basis points to 2.66%, its highest since May 21.

As the German two-year yield was up just 4 bps at 1.88%, the

gap between the two widened, or, in market parlance the German

yield curve steepened.

The German 2-10 curve is now at its steepest since late May,

with the gap between the two at 78 bps.

Trade remained the main focus for markets on Tuesday after

U.S. President Donald Trump on Monday told partners including

powerhouse suppliers such as Japan and South Korea that they

would face sharply higher tariffs from August 1.

The EU will not be receiving a letter setting out higher

tariffs, EU sources familiar with the matter told Reuters on

Monday.

The EU still aims to reach a trade deal by Wednesday after

European Commission President Ursula von der Leyen and Trump had

a "good exchange," a Commission spokesperson said.

Bond analysts at ING also flagged that the August 1 date for

new tariffs to kick in suggested more time to negotiate deals.

"In rates markets the positive trade news is being

translated into more steepening pressures," they wrote in a

note.

"We think more clarity around trade is a prerequisite for

rates to drift higher as it allows markets to focus more on the

EU and German spending stories."

HIGHER BORROWING

Germany plans to increase spending significantly on defence

and infrastructure and analysts expect the greater borrowing

this will require will cause longer-dated yields to rise.

That has particularly affected very long-dated yields, and

Germany's 30-year yield was up 7 bps at 3.19% on Tuesday. That's

just a whisker off the 3.197% it hit on May 22. Breaking past

this would take it to its highest since March.

In contrast, rate-sensitive short-dated bond yields are kept

in check by the European Central Bank's fears of a major slowing

in inflation that would cause them to cut rates further.

Tuesday also sees significant bond issuance by European

countries, reinforcing the focus on debt supply. Germany issued

a 5-year bond, which saw bids well below the average of the last

three issues.

Also issuing bonds on Tuesday are the EU, the Netherlands,

Austria and Britain.

Analysts at Rabobank also flagged the impact of a rise in

Japanese yields. Investors there are looking ahead to an

upcoming upper house election, at which polls indicate the

ruling Liberal Democratic Party and its coalition partner are at

risk of losing their majority.

The 30-year JGB yield jumped 12.5 basis

points (bps) to 3.09%, its highest since May 23.

Back in Europe, most other bonds were trading in line with

German benchmarks.

Italy's 10-year yield rose 6 bps to 3.58%, again

its highest since late May.

France's 10-year yield hit a three month high of 3.386%, and

was up 6 bps on the day.