Euro zone bond yields edge up from multi-week lows ahead of ECB decision

LONDON, June 4 (Reuters) - Euro zone bond yields rose modestly on Wednesday having fallen the day before as benign inflation data helped solidify expectations for a rate cut from the European Central Bank.

Data on Tuesday showed consumer price inflation in the euro area slowed to 1.9% last month from 2.2% in April, its first time at or below the ECB's 2% target since October.

The ECB has cut interest rates seven times since last June and another move is almost fully priced in for Thursday's meeting.

Germany's 10-year yield DE10YT=RR, the benchmark for the euro area, was last up 1.5 basis points (bps) at 2.52%. It fell to its lowest since May 8 on Tuesday at 2.485%.

Germany's policy-sensitive two-year yield DE2YT=RR was little changed at 1.78%, within its recent tight range.

The Dutch 10-year yield NL10YT=RR was up 2 bps at 2.738% after the collapse of the Netherlands' government on Tuesday, while Italy's 10-year yield IT10YT=RR, the benchmark for the euro periphery, was steady at 3.5%.