LONDON, Jan 3 (Reuters) - Euro zone bond yields were

little changed in subdued post-holiday trading on Friday, with

German unemployment figures and the closely watched U.S. ISM

manufacturing survey due later in the day.

Germany's 10-year bond yield, the benchmark for

the euro zone bloc, fell 0.8 basis points (bps) to 2.36%. It hit

a six-week high of 2.405% a week ago before falling back. Yields

move inversely to prices.

Italy's 10-year yield was little changed​ at

3.53% and the gap between Italian and German yields

stood at 116 bps.

The spread between U.S. 10-year Treasuries and German bunds

narrowed 1.4 basis points to 218 bps.

Germany's two-year bond yield, which is sensitive

to European Central Bank rate expectations, was little changed

at 2.1%.

(Reporting by Harry Robertson

Editing by David Goodman

)