LONDON, May 22 (Reuters) - Euro zone bond yields rose on

Wednesday after British data reminded investors of the

stickiness of services inflation and reiterated expectations

that central banks will be cautious when it comes to interest

rate cuts.

The German 10-year bond yield, the benchmark for

the euro zone bloc, rose 3.9 basis points to 2.55%, briefly

touching its highest in three weeks.

Eyes were on data out of Britain which showed consumer

prices rose by an annual 2.3% last month, down sharply from a

3.2% increase in March, but above market expectations.

British services inflation was sticky, inching down to 5.9%

from 6.0% in March.

Markets see a rate cut by the European Central Bank in June

as all but certain, but their path after that is unclear,

meaning investors are paying close attention to both European

inflation data as well as that from around the world.

Italy's 10-year yield was higher by 3.9 basis

points​ at 3.84%, and the gap between Italian and German bunds

widened 0.6 basis points to 129 bps.

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

sensitive to European Central Bank rate expectations, was 3

basis points higher at 3.02%.