LONDON, Aug 14 (Reuters) - Euro zone bond yields were

steady on Thursday having fallen the day before as investors

priced in more easing from the U.S. Federal Reserve after

Treasury Secretary Scott Bessent called on the central bank to

opt for a large interest rate cut.

In an interview on Bloomberg TV, U.S. President Donald

Trump's influential right-hand man on the economy said there was

"a good chance" the Fed lowers interest rates by 50 basis points

when it meets next month.

Investors moved to fully price in a rate cut from the Fed in

September, with around a 7% chance of a larger 50 bp move. Money

market futures imply about a 50% chance that the European

Central Bank lowers borrowing costs again by the year's end.

The size and importance of the U.S. economy means

expectations about Fed rate cuts often heavily influence other

markets.

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

changes in monetary policy expectations, was flat at 1.937%. It

fell 3.5 bps on Wednesday, its biggest daily drop since August

1.

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

euro area, was down 0.5 bps at 2.674% after falling 6.5 bps on

Wednesday.

Investors were now awaiting U.S. factory inflation and

jobless claims data due later on Thursday as well as the Alaska

summit between Trump and Russian President Vladimir Putin on

Friday.

Analysts have said a ceasefire in Ukraine could support

riskier assets and weigh on government bond prices, lifting

yields.

Germany's 30-year yield, which touched an

11-year high of 3.309% on Tuesday, was down 0.5 bps at 3.227%.