UPDATE 1-Euro zone bond yields dip as growth worries weigh

* Euro zone bond yields down 1-2 bps on day

* Production data weaker than forecast

* Cautious ECB tone weighs

* Euro zone periphery govt bond yields http://tmsnrt.rs/2ii2Bqr (Adds more comment, speculation of Moody's upgrade for Ireland)

LONDON, May 12 (Reuters) - Doubts over the global growth outlook and the pace at which the European Central Bank will move towards tighter monetary policy sent European government bond yields lower on Friday as investors eyed a handful of planned debt sales next week.

Analysts said there was talk of an upgrade of Ireland's credit rating by Moody's in a scheduled update on the country due on Friday and a soft tone to stock markets offered some support to prices generally.

Greek government bond yields still minimally traded after years of debt crisis and EU bailouts - were also volatile and mixed as investors weigh the chances of a test return to bond issuance this summer.

But the main topic of discussion was hints of weakness in wage growth and inflation at the end of a week that has seen the Bank of England cut its forecasts and New Zealand's central bank shock markets by not shifting to a tighter policy stance.

In Europe, ECB policymakers have sounded cautious on any swift move to rein in the bank's bond-buying programme later this year, cooling expectations for what it may say after its next policy meeting next month.

An unexpected 0.1 percent fall in euro zone industrial output on Friday also played in.

"Industrial production was a little bit weaker, that may have had some effect at the margins," said Lyn Graham-Taylor, a rates strategist with Rabobank in London.

"It was interesting that the European Commission downgraded their forecasts, which was quite telling on the lack of success on inflation coming through. In general in almost every major economy you're seeing wages going nowhere."

By 1124 GMT, the benchmark 10-year German government yield was down 1 basis point on the day to 0.42 percent.

Yields on debt of the euro zone's weaker borrowers, like Italy, Portugal and Spain, were all also 1-3 basis points lower as investors awaited bond sales next week.

"Things do look calmer with equity markets having stabilised," said Peter Chatwell, head of euro rates strategy at Mizuho in London.

"This is probably just a day for consolidation with some focus on supply for next week. ... The market is still contemplating that there will be a fair amount (of issuance) and also how much we will see in syndicated issues."


ECB Vice President Vitor Constancio echoed the caution of the bank's head Mario Draghi and chief economist Peter Praet on Thursday in the face of growing calls from Germany to wind down the bank's 2.3 trillion euros bond-buying programme.

Expectations of a change at least in language from the bank in June have grown, underpinning a steady rise in Bund yields in the past month, but for shorter-dated notes they remain deep in negative territory and below this year's highs.

Data on Friday also showed Germany's economy grew 0.6 percent in the first quarter, bang in line with expectations.

"The bias is clear, that the next move will be towards tightening and what they (ECB officials) are trying to do is mitigate the market factoring in that too much," Chatwell said.

"That is why there is so much communication going on and why Praet is being so detailed and erring on the dovish side to prevent the market from acting too severely."

For Reuters Live Markets blog on European and UK stock markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.bi z / c m s / ? p a g e I d = l i v e m a r k e t s

(Editing by Catherine Evans)