LONDON, June 9 (Reuters) - Euro zone government bond

yields held steady in early trading on Monday, stabilising after

last week's selloff, while investors watched for developments in

scheduled talks between top U.S. and Chinese trade officials in

London.

The European Central Bank last week cut interest rates by 25

basis points (bps) to 2%, as expected, but signalled it may be

closer to the end of its current easing cycle than many had

previously expected.

* On Monday, benchmark 10-year Bund yields were

up 1 basis point at 2.575%, having risen 5.4 bps last week.

* Two-year German yields were flat at 1.874%.

Schatz yields rose 9 bps last week, marking their largest weekly

increase since early March, when the German government announced

the biggest overhaul in spending in decades.

* 10-year Italian yields were up 1.2 bps at

3.515%, while 10-year French debt was yielding

3.238%, flat on the day. French bond markets were severely

rattled a year ago when President Emmanuel Macron called a snap

election following European parliamentary elections in which his

party suffered dramatic losses.

* A host of ECB officials are scheduled to speak this week,

including board member Isabel Schnabel.