LONDON, July 24 (Reuters) - Euro zone bond yields nudged

lower on Friday, having hit multi-year highs a day earlier, as

market participants took a breather and weighed the outlook for

interest rates and inflation as oil prices eased back below the

$100 mark.

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

euro zone, was last down 1.5 basis points (bps) to 3.1965%. It

hit a 15-year high in the previous session, rising as high as

3.2118%.

Euro zone bonds have been under pressure - especially given

the European economy's vulnerability to imported energy -

throughout the week with oil prices rising above $100 per barrel

for the first time since May. On Friday, Brent crude futures

were last 2.1% lower at $98.59 per barrel, though they were

still set for a 12% weekly rise.

Energy prices have been pushed higher by fresh hostilities

in the Middle East, as well as concerns about a second shipping

chokepoint emerging, disrupting global energy flows further. The

spike in energy costs prompted fresh inflation worries and led

traders to bet on additional policy tightening from the world's

central banks.

The European Central Bank left interest rates unchanged on

Thursday, as expected, but kept the option for a September

increase on the table. Several ECB policymakers on Friday also

noted that inflation risks are high and that the central bank

may need to raise rates once more, but they all stopped short of

calling for an outright hike at the bank's next meeting in

September.

Markets were last pricing in a strong chance of a September

rate hike from the ECB, with the possibility of another increase

later in the year.

The yield on Germany's two-year bond, which is more

sensitive to interest rate expectations, was last around 3 bps

lower at 2.8593%, having touched its highest point since July

2024 in the previous session.

Elsewhere, news of fresh U.S. tariffs also contributed to

inflation worries. The Trump administration on Friday imposed

new tariffs of 10% and 12.5% on goods from 60 trading partners,

including the European Union, based on allegations of lax

enforcement of forced labor bans, just as a temporary 10% global

tariff expired.