Euro zone bond yields rise; traders mull potential German defence fund

LONDON, Feb 25 (Reuters) - Euro area benchmark Bund yields edged higher on Tuesday as traders eyed a report that Germany is discussing 200 billion euros for an emergency defence fund as the country digests the election results.

Remarks from U.S. President Donald Trump overnight that his planned tariffs on Canadian and Mexican imports are on schedule to come into force at the start of March also kept traders nervy.

Germany's 10-year bond yield DE10YT=RR - a benchmark for the wider euro zone - was up 1 basis point (bp) at 2.478%.

The country' 2-year bond yield DE2YT=RR fell 1 bp (bps) to 2.08%.

Benchmark 10-year U.S. Treasury US10YT=RR yields were down 6 bps at 4.384%.