April 10 (Reuters) - Euro zone government bond yields

struggled for direction on Wednesday after tracking U.S.

Treasuries earlier this week as investors await U.S. inflation

data, which might shape the Federal Reserve's monetary policy

path.

Germany's 10-year yield was down 0.5 basis

points (bps) at 2.36%. The euro zone benchmark hit a three-week

high of 2.457% on Monday.

Money markets priced in 85 bps of European Central Bank rate

cuts in 2024, compared with 81 bps early on Tuesday and 91 bps

on Thursday, tracking similar moves in the U.S. market.

The ECB will meet on Thursday and is widely expected to keep

rates unchanged while the market will focus on any hints from

President Christine Lagarde about future moves.

The U.S. benchmark 10-year Treasury yield was

flat at 4.364%, after reaching 4.464% on Monday, its highest

since late November.

Italy's 10-year yield, the benchmark for the

euro zone periphery, was down 0.5 bps at 3.71%.