LONDON, June 2 (Reuters) - Longer-dated euro zone bond

yields edged higher on Monday as traders braced for a widely

expected ECB rate cut later this week, while they remained

sensitive to tariff headlines.

The European Central Bank is tipped to cut its key rate to

2% on Thursday, its eighth move this cycle. Traders reckon a

pause will then follow as the economy holds up better than

anticipated and longer-term inflation worries creep back.

Traders' focus is on economic data ahead of the meeting,

with euro zone inflation expected to drop to 2% on Tuesday,

following final business activity data due on Monday.

U.S. President Donald Trump said on Friday he planned to

increase tariffs on imported steel and aluminum to 50% from 25%,

ratcheting up pressure on global steel producers and deepening

his trade war.

On Monday, Germany's 10-year yield, the

benchmark for the euro area, was last up 2 bps to 2.53%.

Its 30-year yield was up 3 bps to 3.03%.

Traders were also cautious around a 10-year Japanese auction

taking place on Tuesday, which comes following weak demand for

long-dated auctions in May.

The closely watched gap between Italian and German 10-year

bond yields widened to 97 bps. Italian 10-year yields

were up 3 bps to 3.52%.