LONDON, May 15 (Reuters) - Germany's 10-year bund yield

was slightly lower on Wednesday but remained above 2.5% before

key U.S. consumer prices data that could help determine whether

the Federal Reserve will lower borrowing costs this year and by

how much.

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

euro zone bloc, was down 2.0 basis points to 2.52%.

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

sensitive to changes in European Central Bank rate expectations,

was little changed at 2.98%.

Italy's 10-year yield was lower by 1.9 basis

points at 3.86%, and the gap between Italian and German bunds

widened to 133 bps.

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

widened slightly to 191 bps.