Euro zone yields steady ahead of fraught week

LONDON, Aug 11 (Reuters) - Euro zone bond yields opened steady on Monday ahead of a week packed with event risk, including a summit on Ukraine peace between the United States and Russia and a deadline on a U.S.-China trade truce, as liquidity evaporates.

U.S. President Donald Trump and Russian President Vladimir Putin will meet on Friday in Alaska to try to broker peace in Ukraine, marking the first in-person meeting between a U.S. and Russian leader since former President Joe Biden met Putin in 2021.

Meanwhile, a 90-day truce in the trade war between the U.S. and China expires on Tuesday. Traders widely expect the pause to be rolled over for another 90 days.

German 10-year yields DE10YT=RR were roughly unchanged on Friday's closing levels at 2.684%, having ended last week up 1 basis point. So far this month, yields on Bunds, which serve as the benchmark for the wider euro zone, have barely budged.

Two-year yields DE2YT=RR, which tend to be most reactive to changes in expectations for interest rates, were also steady at 1.955%.

There is little in the way of market-sensitive data from the euro zone this week, leaving the focus on July U.S. consumer inflation data on Tuesday, which, if soft, could help cement a rate cut from the Federal Reserve next month.

Commerzbank noted euro zone bond supply this week was expected to be the smallest so far this year, with just a re-opening of German 10-year Bunds and Finnish 10- and 15-year government debt.

Italy has cancelled auctions of 3-year, 7-year and ultralong debt, while Portugal will also stay put, strategists at the bank said.

Elsewhere, 10-year Italian yields IT10YT=RR were down 1 bp at 3.496%, while French 10-year yields FR10YT=RR were steady at 3.388%.