LONDON, April 16 (Reuters) - Euro zone bond yields were

little changed on Tuesday after rising at the start of the week

on the back of strong U.S. retail sales data and a fall in

demand for safe assets.

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

the euro zone, was up 1 basis point (bp) at 2.44%. Yields move

inversely to prices.

** The German 10-year yield climbed 7 bps on Monday after March

U.S. retail sales data came in stronger than expected. Investors

also moved back out of bonds on Monday, having snapped up safe

assets on Friday as tensions between Israel and Iran ratcheted

higher.

** Euro zone yields have risen less than those in the U.S. in

recent weeks as the American economy has continued to beat

expectations, causing investors to significantly cut back their

bets on Federal Reserve rate cuts this year.

** Italy's 10-year bond yield was last up 3 bps at

3.861%. The gap between Germany and Italy's 10-year borrowing

costs was slightly wider at 141 bps, up from a more than

two-year low of 115 bps in mid-March.

** Germany's 10-year bond yield has risen 40 bps this year as

investors have moderated their expectations for rate cuts, while

the U.S. 10-year yield has climbed 77 bps.