LONDON, July 1 (Reuters) - Euro zone government bond

yields fell slightly on Tuesday but remained within their recent

range as markets awaited inflation data from the bloc that is

expected to show a slight uptick in price pressures.

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

the euro area, was last down 2 basis points at 2.58%. The

trading range for bund yields during June was the lowest since

2021, according to Commerzbank.

More timely consumer prices data from the largest countries

in the euro zone have been mixed. Inflation in Spain and France

increased slightly, Italy's was in line with the prior month,

while there was a small downtick in German figures released on

Monday.

Inflation for the region as a whole is expected at 2% in

June, the European Central Bank's goal, up from 1.9% the

previous month, according to economists polled by Reuters.

The ECB, having lowered borrowing costs eight times since

the middle of last year, has recently signalled it intends to

pause rate cuts with inflation back at target.

ECB President Christine Lagarde on Tuesday said the euro

zone is set to face increasing inflation volatility as she

kicked off the ECB Forum on Central Banking in Sintra, Portugal.

The event today includes a panel discussion with Lagarde

alongside the heads of the Federal Reserve, Bank of Japan, Bank

of England and Bank of Korea.

Italy's 10-year bond yield was down 2 bps at

3.474%, keeping the spread between Italian and German 10-year

yields steady at 89 bps.