March 21 (Reuters) - Euro zone government bond yields

edged down on Wednesday after Federal Reserve officials

indicated they still expected to cut rates by 75 basis points

this year.

** Markets await the outcome of the Bank of England policy

meeting at 1200 GMT.

** Germany's 10-year government bond yield, the

euro zone's benchmark, was down 1.5 basis point (bp) at 2.42%.

** Money markets priced in an around 85% chance of an ECB

rate cut of 25 bps by June from around 80%

late on Wednesday and 90 bps in 2024 from

85 the day before.

** The gap between Italian and German 10-year bond yields

widened to around 124 bps after falling to its lowest in over

two years last week at 115.40 bps.

** German 2-year bond yields, which are more

sensitive to interest rate expectations, fell 4.5 bps at 2.88%.