UPDATE 1-Euro zone bond yields dip, with inflation in focus

LONDON, March 26 (Reuters) – Euro zone government bond yields fell slightly on Tuesday, after rising the previous day, as investors waited for the first readings of March inflation data from the bloc later in the week and for U.S. price figures on Friday. Germany’s 10-year bond yield, the benchmark for the euro zone, was last down 3 basis points (bp) at 2.346%, after climbing 5 bps on Monday. Yields move inversely to prices. Euro zone yields have fallen over the last week as central banks have talked more warmly about rate cuts, and after the Swiss National Bank lowered borrowing costs. Yet they remain higher for the year, as economies and inflation have been somewhat slower to cool than…