LONDON, May 21 (Reuters) - Euro zone government bond

yields edged higher on Wednesday, shaped by the broad global

mood, with Treasury yields rising on worries about the U.S.

fiscal position, super-long Japanese yields at record levels,

and UK inflation above expectations.

Germany's 10-year yield rose 2 basis points to 2.62%,

as the euro zone benchmark underperformed Germany's

rate-sensitive two-year yield which was fractionally higher at

1.85%.

Long-dated bond yields are rising around the world, and the

10-year U.S. Treasury yield was 4 bps higher at 4.52% on

Wednesday, close to Monday's one-month high, on concerns that a

tax-cut bill being debated in Congress will worsen the U.S.

budget deficit at a faster pace than previously expected.

Japanese super-long yields have also moved sharply higher

this week.

Italy's 10-year yield, seen as the benchmark for the euro

zone periphery, was nearly 2 bps higher at 3.63%.