Jan 23 (Reuters) - Euro zone bond yields edged down

slightly on Thursday, while investors awaited more certainty

around U.S. President Donald Trump's trade policies and looked

ahead to next week's central bank meetings.

Trump did not immediately impose tariffs on U.S. imports on

his first day back in the White House, but said he is mulling

tariffs of around 25% on Canada and Mexico and around 10% on

China from Feb. 1. He has also vowed to impose duties on

European Union imports.

Germany's 10-year bond yield, the benchmark for

the euro zone bloc, fell one basis point (bp) to 2.488%. Yields

move inversely to prices.

Italy's 10-year yield was less than one bp lower

3.593%, while the gap between Italian and German yields

stood at 109.7 bps.

Markets expect the European Central Bank will cut interest

rates with 25 bps next week, while the U.S. Federal Reserve is

seen holding rates steady.

Germany's two-year bond yield, which is more

sensitive to ECB rate expectations, was 1.5 bp lower 2.22%.