LONDON, Aug 1 (Reuters) - German government bond yields

fell for a sixth day on Thursday, reflecting their longest

stretch of gains since November, after the U.S. Federal Reserve

signalled the likelihood of a rate cut as early as September,

which boosted Treasuries.

Benchmark 10-year Bund yields, the benchmark for

the euro zone bloc, fell 1.8 basis points to 2.28%, heading for

a sixth straight day of declines, having ended July with a

decline of 18 basis points.

The spread between U.S. 10-year Treasuries and German Bunds

widened 2.6 basis points to 177 bps, reversing

much of Wednesday's 3.27-bp narrowing.

Italian 10-year yields were little changed​ at

3.65%, leaving their premium over Bunds 1.1 basis

points wider at 136 bps.

The Bank of England delivers its decision on monetary policy

later in the day and markets are attaching a 61% chance of a

cut. Ten-year gilt yields were down 2 bps at 3.949%,

leaving their premium over Bunds at 169.2 bps, little changed on

the day.

France comes to market later with a long-term bond auction,

as does Spain.

"European government bond GB primary markets remain busy

with auctions scheduled in long-end OATs, where the auction size

is lower than usual but in line with the seasonal pattern,"

Commerzbank strategists said in a note.