REFILE-Euro zone bond yields steady as markets await U.S. data

LONDON, November 17 (Reuters) - Germany's 10-year government bond yield was steady on Monday but holding near its highest in almost six weeks as external factors continued to drive euro zone bond markets, including rising treasury and gilt yields.

Germany's 10-year yield DE10YT=RR, the euro zone benchmark, was little changed at 2.715% after touching its joint-highest since October 7 at 2.718%.

With European Central Bank policy on hold, the focus is elsewhere, mainly on expectations for U.S. Federal Reserve policy.

Money market traders have trimmed bets on a U.S. rate cut next month as policymakers have sounded the alarm about sticky inflation, even as the labour market looks to be cooling.

"It’s not just the drumbeat of more hawkish FOMC members has grown louder, but it also became clear last week that FOMC participants considered centrist-to-dovish already had turned considerably more hawkish by the October meeting." SGH Macro's chief U.S. economist Tim Duy said of the Fed's main policy body.

The more hawkish turn from Fed officials has pushed U.S. yields higher, with the benchmark 10-year yield US10YT=RR at 4.13%, up about 20 basis points from its October 22 low.

The end of the U.S. government shutdown means that markets and the Fed will have some long-awaited official data to parse this week, including September's delayed jobs report on Thursday.

While markets have lowered expectations for U.S. interest rate cuts, expectations for ECB policy remain firmly anchored. Investors expect the ECB to keep rates steady again next month, with less than 10 basis points of easing priced in for next year.

Germany's two-year yield DE2YT=RR, which is sensitive to changes in ECB rate expectations, was little changed at 2.036%.