LONDON, Jan 10 (Reuters) - Euro zone government bond yields paused on Wednesday, taking a break from this year's upwards trend, as traders kept an eye on remarks by European Central Bank policy makers for clues about how soon they will start cutting interest rates.

Germany's 10-year bond yield was last down about 1 basis point at 2.18%.

The euro zone benchmark yield dropped around 80 bps in November and December but has risen more than 15 bps in January, as traders first moved to price in significant rate cuts from major central banks in Europe and the United States in 2024 on the back of slowing inflation, and then, this year, reassessed those calls.

Market pricing now reflects around a 40% chance of the European Central Bank cutting interest rates in March.

Such a move was fully priced in late December, but a sense that pricing had gone too far, combined with stronger-than-expected employment data in Europe and the U.S., has caused traders to reassess.

A deluge of supply has also weighed on bond prices, which move inversely to yields.

The main event this week that could cause a major reassessment of the timing of interest rate cuts is U.S. consumer inflation data due Thursday, and markets are in something of a holding pattern until then.

"Today’s data calendar is certainly only sparsely stocked. The sole item which is of greater interest (is) French industrial production readings for November," said analysts at DZ bank in a morning note to clients.

They added remarks from several ECB policy makers would be "also of interest".

ECB executive board member Isabel Schnabel, seen as the most influential voice in the conservative camp of policymakers, will conduct an online Q&A at 14.00 GMT. Remarks by Schnabel to Reuters in early December contributed to markets bringing forward expectations of rate cuts.

ECB Vice President Luis de Guindos said earlier on Wednesday that the slowdown in euro zone inflation is likely to pause at the beginning of the year.

Italy's 10-year yield dipped 3 bps to 3.82%. Like its German peer it has rebounded a touch in 2024 having tumbled to leave the gap between the German and Italian yields, at 162 bps.

Germany's two-year yield rose a fraction to 2.61% and Italy's was down 3 bps at 3.18%.

Meanwhile trade body ICMA said on Wednesday that central banks will have to intervene more frequently in government bond markets.

(Reporting by Alun John; Editing by Sharon Singleton)