Euro zone yields dip as investors turn cautious on stocks

LONDON, Nov 5 (Reuters) - Euro zone government bond yields dipped on Wednesday, tracking U.S. Treasuries, which rallied as equities markets tumbled on concerns over high valuations, particularly in the tech sector.

The European Central Bank's quarterly wage tracker is due later in the session. That lands after the central bank left rates unchanged last week at a regular review, reiterating monetary policy was "in a good place."

The last report in September indicated a continued slowing in wage growth, which was forecast to come in at 1.7% in the first half of next year, below the ECB's 2% inflation target.

German 10-year Bund yields, which fell 1 basis point on Tuesday, were little changed at 2.646%. Two-year yields , which are the most sensitive to shifts in inflation expectations and the outlook for monetary policy, were also steady at 1.998%.

"Today, the updated ECB wage tracker should make headlines, which aims at projecting future wage growth based on collective wage agreements. It currently projects wage pressure to slow markedly over coming months. The tracker, excluding special payments, currently projects negotiated wages to decline to below 2.5%," Commerzbank strategist Hauke Siemssen said in a note.

In terms of bond supply, the German government sells 2 billion euros ($2.33 billion) in 15-year debt later in the day, while investors will also be looking at the U.S. Treasury Department's quarterly refunding plans for any detail on how the government plans to finance its deficits.

The U.S. government shutdown, now in its 36th day, has starved the data calendar, which also leaves European investors with far less certainty on the outlook for the broader market.

The premium at which U.S. 10-year Treasury yields trade relative to those on German Bunds was around 142.8 bps on Wednesday, its narrowest for around a week.

($1 = 0.8575 euros) (Reporting by Amanda Cooper; Editing by Jacqueline Wong)