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Euro zone yields edge lower, investors await central bankers' meeting



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LONDON, Aug 20 (Reuters) -Euro zone bond yields inched lower on Tuesday, maintaining the calm that has washed over bond markets following volatility earlier this month, with investors eyeing a meeting of central bankers in Jackson Hole later this week.

Germany's 10-year bond yield DE10YT=RR, the benchmark for the euro zone, was a fraction lower at 2.25%, having been largely steady for the past few sessions.

This week's annual gathering of central bankers was seen by investors as the biggest potential risk factor on the horizon.

Federal Reserve chair Jerome Powell is due to deliver remarks on the economic outlook on Friday, the symposium's first full day, with other top global policy makers also due to speak.

Italy's 10-year yield IT10YT=RR was lower by 1.2 basis points​ (bps) at 3.62%, and the gap between Italian and German 10-year yields DE10IT10=RR was 136 bps, continuing to narrow from more than 150 bps in early August.

Germany's two-year bond yield DE2YT=RR, which is more sensitive to European Central Bank rate expectations, was 1 bp lower at 2.44%.



Reporting by Alun John;
Editing by Helen Popper

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