Aug 13 (Reuters) - German 30-year bond yields fell on

Wednesday, retreating from a 14-year high hit the previous day,

after partially catching up with short-dated yields and

re-steepening the curve.

The summit between Russian President Vladimir Putin and U.S.

President Donald Trump over Ukraine will be in focus.

Analysts mentioned Dutch pension reforms, which are expected

to reduce demand for long-dated bonds, and expectations for a

massive increase in German fiscal spending as the main drivers

of the sell-off in long-dated bonds on Tuesday.

They expect a growing imbalance between bond demand and

supply to weigh on prices, which move inversely to yields.

Tuesday's move steepened curves across the euro area,

reversing a flattening trend that had persisted almost

uninterrupted since mid-July.

Yield curves steepen when long-dated yields rise faster than

the short-dated ones.

Germany's 30-year government bond yield dropped one basis

point (bp) to 3.29% after hitting 3.3090% the day before, its

highest level since summer 2011.

Policy-sensitive German two-year yields were down

0.5 bps at 1.96%, while German 10-year yields fell

one bp to 2.73%.

The gap between 2-year and 10-year German bond yields

tightened by one bp to 130 bps on Wednesday after

widening by more than 6 bps the day before.

Italy's 10-year yield was down two bps at 3.54%.