LONDON, June 18 (Reuters) - Euro zone bond yields nudged

higher on Wednesday as investors awaited the outcome of the

Federal Reserve meeting later in the day for any hints about the

timing of further rate cuts, and kept a wary eye on developments

in the Middle East.

Germany's 10-year bond yield was up 1 basis

point on the day at 2.55%, and its two-year yield was up a

fraction at 1.87%.

Investors around the world will be watching the Fed closely,

though the U.S. central bank is widely expected to leave its

benchmark overnight interest rate in the 4.25%-4.50% range,

where it has been since December.

Traders' focus will be on whether it gives any clues as to

whether and when it might begin cutting rates again, though it

is also likely to repeat that it can't give much guidance until

the impact of Trump's import tariffs and fiscal policies become

clearer.

Italy's 10-year bond yield was 2 bps higher at 3.54%.