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UPDATE 1-Euro zone GDP, German inflation data lifts bloc's bond yields

Dhara Ranasinghe

* Bund yield rises to 1-week high after state inflation data

* Biggest one-day jump in over two weeks

* Euro zone Q1 GDP stronger than expected

* Euro zone periphery govt bond yields (Recasts with German inflation)

LONDON, April 30 (Reuters) - Germany's 10-year government bond yield rose to a one-week high above zero percent on Tuesday, following stronger-than-expected euro zone economic growth data and signs of an inflation pick-up in the powerhouse German economy.

Gross domestic product in the 19 countries sharing the euro rose 0.4 percent quarter-on-quarter in the first three months of 2019, up from 0.2 percent in the fourth quarter of 2018 and 0.1 percent in the third.

That followed signs of a pick-up in inflation in Germany, the euro zone's biggest economy.

Consumer price inflation in North Rhine-Westphalia rose 2.1 percent year-on-year in April, while inflation in Bavaria climbed 2 percent. The country-wide number will be released later this session.

A key gague of long-term inflation expectations rose to a five week high of 1.4194 percent following the data release .

Germany led a selloff in higher-rated euro zone bonds, rising almost four basis points to a one-week high at 0.04 percent. It was set for its biggest one-day jump in over two weeks.

"The inflation data is clearly on the firmer side," said Richard McGuire, head of rates strategy at Rabobank in London.

"It is adding to pressure on core paper, which was emerging yesterday as markets welcomed the lack of rating downgrade for S&P on Italy and the fact that there was not a better showing for the far right in Spain's election at the weekend."

S&P Global on Friday maintained Italy's BBB credit rating, helping narrower peripheral bond spreads over benchmark Germany on Monday.

Across the euro zone, most 10-year bond yields were 3-4 bps higher on the day as Tuesday's economic news boosted hopes of a brighter outlook ahead and offset the weaker tone overnight from China, where readings on manufacturing activity failed to meet expectations.

France's economy, the second largest in the euro area, grew 0.3 percent in the January-March period, the third quarter in a row at that rate, preliminary data on Tuesday showed. It was in line with market expectations.

Spain's economy, the fourth biggest in the currency bloc, expanded a stronger-than-expected 0.7 percent in the first three months of the year.

"The focus is on the inflation numbers which were weak last month," said Pooja Kumra, European rates strategist at TD Securities in London.

"Given the fact that tomorrow is a holiday in much of Europe and we have the Fed meeting, volumes are light," she said, referring to a two-day meeting of the U.S. Federal Reserve that concludes on Wednesday. (Reporting by Dhara Ranasinghe; Editing by Alison Williams and Angus MacSwan)