Euro zone yields hold steady ahead of inflation data

Jan 7 (Reuters) - Euro area bond yields held broadly steady on Tuesday ahead of inflation figures from the euro zone later in the day.

Germany's 10-year bond yield DE10YT=RR, the benchmark for the euro zone bloc, was up less than one basis point (bp) at 2.459%. Yields move inversely to prices.

Monday's indicator showed a faster-than-expected pickup in German inflation, and investors now look to the euro zone harmonised index of consumer prices due later in the day.

The inflation data will be the last before the European Central Bank's next meeting on Jan. 30.

Markets currently expect the ECB to cut interest rates by around 100 bps this year 0#EURIRPR.

Italy's 10-year yield IT10YT=RR was up 2 bps​ at 3.597%, after touching 3.629%, its highest since Nov. 18. The gap between Italian and German yields DE10IT10=RR widened 1.5 bps to 112.7 bps.

Germany's two-year bond yield DE2YT=RR, which is more sensitive to changes in ECB rate expectations, was little changed at 2.197%.

(Reporting by Greta Rosen Fondahn; Editing by Amanda Cooper)

((Greta.RosenFondahn@thomsonreuters.com))