Euro zone government bond yields rose before the release of inflation data as the bloc's economy shows signs of economic recovery that reduces the need for monetary stimulus and increases appetite for risky assets.

Consumer prices in three big economies in the region, Germany, France and Spain, have risen sharply this month, suggesting inflation for the euro zone as a whole, due for release at 1000 GMT, is also likely to be high. Economists polled by Reuters expect 1.6 percent.

Bond yields in the region have risen sharply in recent weeks on improved economic data on the belief that the European Central Bank will wind down stimulus as the single currency bloc heads towards its targeted inflation of close to but below 2 percent.

"The German figure of 1.9 percent, that is a new high that we haven't seen in quite a while, and yields have been rising on higher spot inflation for a while now," said DZ Bank strategist Christian Lenk.

French inflation beat expectations at 1.6 percent year-on-year in January and Spanish inflation was 3 percent in the first month of the year, the fastest rate in four years.
The yield on Germany's 10-year government bond , the regional benchmark, rose 3 basis points to 0.47 percent.

Most other euro zone yields were up 2-3 bps on the day, though the lower-rated south European countries were largely flat in early trades.

Continued signs of recovery in the euro zone would likely give further impetus to the selloff in government bonds, but the rise would be capped by political uncertainty in the United States and Europe, analysts said.

Curbs on travel to the United States ordered by President Donald Trump brought home to investors that he is serious about implementing his campaign pledges and led to a selloff in U.S. stocks on Monday.

"There is a feeling that maybe we have been too exuberant since he was elected, that he may be open to fiscal measures but on the other hand he has the potential to behave erratically," said Lenk.

Upcoming French elections have also been a concern for the market on prospects of far-right leader Marine Le Pen creating an upset similar to the Brexit vote or Trump's election, and pushing for a French exit from the euro zone.

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