【whatever you do take care of your shoes phish】Euro zone yields rise as investors turn cautious on economic outlook

* German yields rise 3 bps,whatever you do take care of your shoes phish Italian yield 5-6 bps

* German constitutional court ruling due on Tuesday

* Euro zone periphery govt bond yields http://tmsnrt.rs/2ii2Bqr

LONDON, May 4 (Reuters) - Euro zone bond yields rose on Monday as investors worried that easing lockdowns would not mean a quick economic recovery, while Italian bond yields headed higher as more investors sold up following last week's European Central Bank meeting.

With equity prices falling as a more cautious tone spread across markets, bond investors were also in a risk averse mood as more countries relaxed restrictions introduced to help fight the spread of COVID-19.

Daniel Lenz, a strategist at DZ Bank, said it was not surprising that yields were up with many investors taking profits after recent falls in core euro zone bond yields, as well as ongoing concerns about the longer-term impact on economies of the lockdown measures.

"People know and realise that this economic recovery will take time," he said.

He added that a ruling, due on Tuesday, from the German constitutional court on whether the ECB's expanded bond-buying scheme was in breach of German constitutional law was also making many investors nervous.

The German 10-year yield rose 3 basis points to -0.561% . Other core yields, such as in France, were up by similar amounts.

German yields fell to 1-1/2 month lows last Thursday after the ECB held off from announcing any new big policies.

In southern Europe, Italian yields rose, with the 10-year yield up 6 basis points to 1.834% - not far off a one-week high and extending last week's increase.

Analysts said some investors were disappointed that the ECB did not detail more policies that could have supported Italian debt.

Other peripheral debt yields also rose. The Spanish 10-year bond yield climbed 5 basis points to 0.854% while the 10-year Portuguese bond yield widened by 6 bps, to 0.883% . (Reporting by Tommy Reggiori Wilkes; Editing by Kirsten Donovan)

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