Jan 10 (Reuters) - Euro zone government bond yields hit

fresh multi-month highs on Friday as investors awaited U.S. jobs

data later in the session, which could provide clues about the

Federal Reserve's monetary policy path.

Borrowing costs have risen as strong economic figures and

the prospect of U.S. tariffs have fuelled inflation fears on

both sides of the Atlantic.

Germany's 10-year government bond yield was up 3

basis points (bps) at 2.559%, its highest since July 10.

A key market gauge of long-term inflation expectations

was at around 2.11%, having dropped below 2% in

early December.

Germany's 2-year yield, which is more sensitive

to expectations for European Central Bank rates, rose one bp to

2.23%.

Markets priced in an ECB deposit facility rate at 2.15% in

July 2025, from 1.95% early this year. The

depo rate is 3%.

The gap between French and German bond yields - a gauge of

the premium investors demand to hold French debt - was at 85

bps.

Italy's 10-year yield rose 3 bps to 3.74%, after

hitting 3.76%, its highest since Nov. 7. The gap between Italian

and German yields stood at 115 bps.