LONDON, July 23 (Reuters) - Euro zone bond yields were

little changed on Tuesday as investors continued to grapple with

U.S. President Joe Biden's decision to end his reelection

campaign.

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

the euro zone bloc, rose 1 basis point (bp) to 2.492%.

It rose late in the European session on Monday in what some

analysts said was a sign of investors trying to gauge what the

U.S. election might mean for American debt issuance and global

bond markets.

Italy's 10-year yield was higher by 2 bps at

3.79%, and the gap between Italian and German bund yields

widened slightly to 129 bps. Yields move inversely

to prices.

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

sensitive to European Central Bank rate expectations, was little

changed at 2.816%, after rising 4 bps on Monday.