Aug 12 (Reuters) - German 30-year government bond yields

rose to their highest level since 2011, driven by renewed

investor focus on expectations of sharp increase in fiscal

spending, while U.S. economic data released earlier came in

roughly in line with forecasts.

"I don't see a specific driver today, but the move in

long-dated German yields isn't surprising given the low volumes

and the broader economic backdrop," said Michiel Tukker, rate

strategist at ING, citing the Dutch pension reform and

expectations of increased issuance from Germany.

Germany's 30-year government bond yield was up 7 basis

points (bps) at 3.2898%, its highest level since summer 2011.

Euro zone borrowing costs had held steady for most of the

session after the United States and China rolled over a trade

truce for 90 more days, as expected.

Policy-sensitive German two-year yields were up

0.5 bps at 1.97%, while German 10-year yields rose 5

bps to 2.74%.

Two-year U.S. Treasury yields fell on Tuesday after data

showed that U.S. consumer price inflation was roughly in line

with the expectations of economists in July, likely clearing the

way for the Federal Reserve to cut interest rates in September.