LONDON, May 14 (Reuters) - Euro zone bond yields were little changed on Tuesday as investors waited for Wednesday's data on U.S. inflation, which could influence the Federal Reserve and other central banks' rate-cutting decisions.

Germany's 10-year bond yield, the benchmark for the euro zone bloc, was up very slightly at 2.514%. Yields move inversely to prices.

"We think that most important data this week will be tomorrow's U.S. CPI report," said Camille de Courcel, head of G10 rates strategy for Europe at BNP Paribas.

"We think that will be the driver for global rates. And in particular, we think that even an in-line (with expectations) print...would likely see yields go to the downside."

Data on Wednesday is expected to show U.S. consumer price index inflation slowed to 3.4% year-on-year in April, from 3.5% in March. Before that, investors will pay attention to U.S. producer price inflation figures due out later on Tuesday.

The size of the U.S. economy and the importance of the dollar mean global markets - including in euro zone bonds - shift along with expectations of Federal Reserve policy.

Central bankers

have cautioned

that they do not want to stray too far from the Fed's rate path given that it could hurt their currencies.

Italy's 10-year yield was higher by 1 basis point (bp) at 3.868%, and the gap between Italian and German bond yields widened 1 bp to 135 bps.

Germany's two-year bond yield, which is more sensitive to European Central Bank rate expectations, was down 1 bp at 2.945%.

Yields have risen this year as U.S. economic data has come in stronger than expected, causing investors to rein in their bets on central bank rate cuts. They have fallen somewhat since mid-May, however, on the back of signs of a slowdown in U.S. growth.

Survey data released on Tuesday by the German ZEW institute showed business morale in the country hit a two-year high in May, a further sign that the euro zone economy is recovering from a period of stagnation.

In the United States, President Joe Biden unveiled a sweeping set of

tariff increases

on Chinese products on Tuesday as he tries to appeal to voters in U.S. industrial heartlands.

The spread between U.S. 10-year Treasury and German bond yields narrowed 2 bps to 196 bps. (Reporting by Harry Robertson; Editing by Andrew Heavens and Ed Osmond)