(Updates at 1000 GMT)

By Harry Robertson

LONDON, Sept 5 (Reuters) - Euro zone bond yields held

steady on Thursday after falling for the previous two sessions,

as investors waited for more data on the health of the U.S. jobs

market.

Yields have slid this week as markets have fretted over

the looming August U.S. employment report, due on Friday, and

reacted to figures on Wednesday showing American

job openings fell to their lowest level in 3-1/2 years in

July.

Germany's two-year bond yield, which is

sensitive to European Central Bank rate expectations, fell to

2.288% on Thursday, its lowest since a previous bout of economic

worries sent yields tumbling on Aug. 5. It later inched up to

trade flat at 2.316%.

Investors have nudged up their bets on U.S. and European

rate cuts this week, helping pull down bond yields, while also

moving into the safety of government debt as stocks have

stumbled.

Markets have been on edge about Friday's U.S. non-farm

payrolls report since weaker-than-expected July numbers helped

spark a rout in stocks, although that later reversed.

The German 10-year bond yield, the benchmark for

the euro zone bloc, fell to 2.197% in early trading, its lowest

since Aug. 22. It was last slightly higher at 2.223%. Yields

fall as prices rise, and vice versa.

ADP data on U.S. private payrolls, an ISM services sector

survey and weekly jobless claims could spur volatility later in

the day.

"Those could also move the market but of course all the

eyes are on non-farm payrolls," said Jussi Hiljanen, rates

strategist at lender SEB.

European data did little to move euro zone markets,

which are overwhelmingly focused on the U.S. economy and the

Federal Reserve, given the force they exert over global growth.

German industrial orders unexpectedly rose in July,

although the increase was flattered by some large orders,

data showed

on Thursday. Separate data showed euro zone

retail sales

slipped very slightly in July.

​Italy's 10-year yield was up 2 bps at 3.599%

after falling 9 bps on Wednesday, and the gap between Italian

and German yields stood at 137 bps.

"In the coming months it will be primarily the U.S. data

that will move the euro zone bond market and even the ECB

expectations," Hiljanen said.