LONDON, April 17 (Reuters) - Euro zone bond yields

continued to climb on Wednesday, trading near a 1-1/2-month high

on the back of strong U.S. data and this week's fall in demand

for safe assets.

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

the euro zone, was last 0.3 basis point (bps) higher on the day

at 2.489%, not far from its highest level since late February

hit on Tuesday.

Yields move inversely to prices.

The German 10-year yield has climbed since Monday -

recovering from Friday's tumble to 2.318% - after March U.S.

retail sales data came in stronger than expected. Investors also

moved back out of bonds this week, having snapped up safe assets

on Friday as tensions between Israel and Iran ratcheted higher.

Italy's 10-year bond yield was last up 0.6 bps

at 3.918%, after surging to its highest level since March 1 on

Tuesday.

(Reporting by Joice Alves

Editing by Ros Russell)