LONDON, Jan 10 (Reuters) - Germany's 10-year bund yield rose slightly on Wednesday as traders kept an eye on remarks by European Central Bank policy makers for clues on how soon they will start cutting interest rates.

Germany's 10-year bond yield was last up 2.1 basis points (bps) on the day at 2.21%, briefly rising to a near one-month high of 2.213%.

The euro zone benchmark yield dropped around 80 bps in November and December but has risen more than 17 bps in January, as traders first moved to price in significant rate cuts 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 (ECB) cutting rates in March, while around 135 bps of easing is priced in by the end of the year.

A move in March was fully priced in late December, but a sense that markets had gone too far, combined with stronger-than-expected employment data in Europe and the United States, has caused traders to reassess.

A deluge of supply has also weighed on bond prices, which move inversely to yields, though so far investors seem willing to absorb the new issuance.

Spain raised 15 billion euros ($16.4 billion) from a 10-year bond sale on Wednesday, with investor demand exceeding 130 billion euros, the Treasury said, surpassing the previous record of 97 billion euros during 2020.

Spain's 10-year yield rose 1.5 bps to 3.179% on Wednesday .

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.

"What happens over the next few days looks more important to markets and investors than what happens today," said Bob Savage, head of markets strategy and insights at BNY Mellon.

"Markets have plenty to digest and the question is which pulls or pushes most after the CPI tomorrow."

A Reuters poll of economists expects U.S. CPI to edge up to 3.2% on an annual basis, with the core rate moderating to 3.8% year-on-year.

ECB policymakers offered a mixed view of the economy and whether market pricing for easing this year is correct.

ECB executive board member Isabel Schnabel said on Wednesday it was "too early to discuss rate cuts". Remarks by Schnabel to Reuters in early December had contributed to markets bringing forward expectations of rate cuts.

The central bank's Vice President Luis de Guindos sounded more dovish, saying that risks to economic growth were more tilted to the downside.

Italy's 10-year yield was little changed at 3.851%. Like its German peer it has rebounded a touch in 2024 having tumbled late last year to leave the gap between the German and Italian yields at 163 bps.

Shorter dated bond yields ticked up a fraction, causing curves to become slightly more inverted.

Germany's two-year yield touched a near one-month high of 2.646% after rising around 4 bps.

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

($1 = 0.9126 euros) (Reporting by Alun John, additional reporting by Samuel Indyk; Editing by Christina Fincher and Mark Potter)