GLOBAL MARKETS-Rate fears pressure bonds, stocks gain

** Focus on inflation and interest rate concerns

** Wall Street likely open firmer, Europe flat

** Bonds flat to lower, dollar retreats after bounce

By Jeremy Gaunt, European Investment Correspondent

LONDON, June 11 (Reuters) - A conviction that central banks will take steps to fight the threat of global inflation weighed on markets again on Wednesday, keeping bonds and the dollar relatively steady while stocks were mixed.

Wall Street looked set to open higher.

Comments from Federal Reserve Chairman Ben Bernanke on Tuesday that the Fed would "strongly resist" a rise in public perceptions of inflation continued to reverberate.

It was the strongest language yet used by Bernanke to warn markets the Fed will not be complacent as declines in the dollar helped to spur crude's 40 percent climb so far this year.

The comment followed similar hawkishness from European Central Bank President Jean-Claude Trichet last week and a surprise "hold" on interest rates from the Bank of Canada on Tuesday.

Underlining the general concern about prices, Spain said on Wednesday that year-on-year inflation was 4.6 percent in May, its highest rate in nearly 13 years.

"We should take what Bernanke said at face value. He said the downside risks to growth have diminished and now they are more focused on inflation risk," said John Ip, senior economist at Morley Fund Management.

Government bonds suffered early from the new mood, with euro zone government bond futures hitting a new 11-month low on Wednesday and short-dated yields rising.

The dollar also felt the impact, striking a 3-1/2-month high against the yen.

"Fed hawkishness has triggered a rebound in the dollar and Bernanke's comments that the U.S. economy is not faring as badly as was thought have improved risk appetite which is supporting the yen," said Adam Myers, markets strategist at Credit Suisse.

The dollar was later at 107.24 yen JPY=, down a bit on the day, while the euro was up at $1.5514 EUR=. ECB interest rates are higher that the Fed's.

STOCKS

European stocks tried to rally after recent weakness and the FTSEurofirst 300 .FTEU3 opened higher. It was later flat.

Investors were sceptical that it would last.

"We don't believe that this (rally) is going to hold water," Franz Wenzel, a Paris-based strategist at AXA Investment Managers, said of the early gains.

"It's not really the environment where you want to be brave."

Earlier, Japan's Nikkei stock average rose 1.2 percent, boosted by exporters on a softer yen.

The benchmark average .N225 added 162.31 points to end at 14,183.48, snapping a two-day losing streak and breaking above the key 25-day moving average.

The broader Topix rose 0.5 percent to 1,390.03.