LONDON, June 17 (Reuters) - Euro zone bond yields ticked

slightly higher on Monday in calmer trading after a dramatic

Friday in which political jitters sent German yields tumbling

and pushed up the risk premium on French and Italian debt.

German 10-year bond yield, the benchmark for the

euro zone bloc, rose 2 basis points (bps) to 2.381%, after

falling 26 bps last week.

France's 10-year bond yield was up 2 bps at

3.152%, while Italy's 10-year yield was unchanged at

3.916%.

The gap between French and German 10-year yields was at

around 77 bps, while the Italian-German yield gap stood at

152 bps.

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

sensitive to European Central Bank rate expectations, was 3 bps

higher at 2.787%.