Sept 13 (Reuters) - Euro zone government bond yields

fell on Friday, mirroring a decline in U.S. Treasury yields

after media reports raised the chances of a big rate cut by the

Federal Reserve next week.

The German 10-year bond yield, the benchmark for

the euro zone bloc, fell 3.4 basis points (bps) to 2.125%, while

the two-year bond yield, which is more sensitive to

European Central Bank (ECB) rate expectations, fell 4.5 bps to

2.19%.

The yield on two-year Treasury notes fell 6.3 bps

to 3.585% after the Wall Street Journal and the Financial Times

reported it might be a close call next Wednesday, surprising

markets that had assumed the Fed would start with a

quarter-point move.

The bloc's bond yields edged higher on Thursday after the

ECB cut rates as expected and tweaked its economic forecasts,

leading markets to slightly reduce their bets on how much the

central bank might ease policy this year.

Italy's 10-year yield fell 3.9 bps​ to 3.52%,

and the gap between Italian and German bond yields

stood at 138 bps, mostly unchanged on the day.