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Germany's 10-year bond yield holds near six-week high

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Fed's hawkish stance raises U.S. yields

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ECB expected to keep rates steady

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Minimal ECB easing expected next year

LONDON, November 17 (Reuters) - Germany's 10-year

government bond yield was steady on Monday but holding near its

highest in almost six weeks as external factors continued to

drive euro zone bond markets, including rising treasury and gilt

yields.

Germany's 10-year yield, the euro zone

benchmark, was little changed at 2.715% after touching its

joint-highest since October 7 at 2.718%.

With European Central Bank policy on hold, the focus is

elsewhere, mainly on expectations for U.S. Federal Reserve

policy.

Money market traders have trimmed bets on a U.S. rate cut

next month as policymakers have sounded the alarm about sticky

inflation, even as the labour market looks to be cooling.

"It's not just the drumbeat of more hawkish FOMC members has

grown louder, but it also became clear last week that FOMC

participants considered centrist-to-dovish already had turned

considerably more hawkish by the October meeting." SGH Macro's

chief U.S. economist Tim Duy said of the Fed's main policy

body.

The more hawkish turn from Fed officials has pushed U.S.

yields higher, with the benchmark 10-year yield at

4.13%, up about 20 basis points from its October 22 low.

The end of the U.S. government shutdown means that markets

and the Fed will have some long-awaited official data to parse

this week, including September's delayed jobs report on

Thursday.

While markets have lowered expectations for U.S. interest

rate cuts, expectations for ECB policy remain firmly anchored.

Investors expect the ECB to keep rates steady again next month,

with less than 10 basis points of easing priced in for next

year.

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

changes in ECB rate expectations, was little changed at 2.036%.