LONDON, Aug 7 (Reuters) - Euro zone government bond

yields edged up in calmer trading on Wednesday, after a rout

across global equities earlier in the week petered out, though

benchmark yields were still near their lowest for the year.

An index of bond market volatility has hit its

highest level since the start of the year, reflecting the

turbulence this week.

German 10-year Bund yields, the benchmark for

the euro zone bloc, rose 3.6 basis point to 2.22%, while yields

on the two-year Schatz, which are more sensitive to

shifts in rate expectations, were up 4 bps at 2.405%. Yields on

both were near their lowest since January.

"As the data calendar remains empty, Bunds and spreads will

probably remain highly directional to equity markets or the

Japanese yen," Commerzbank rates strategist Hauke Siemssen said.

Italian 10-year yields, which many use as a

proxy for the euro zone's more indebted members, rose 2 bps to

3.676%, leaving the premium over German Bunds a

1.3 bps wider at 144.5 bps.

Two-year euro zone swap spreads, which can act as a gauge of

investor risk aversion, tightened for a third day to their

narrowest since Aug 1, at around 32 bps. The spread had risen to

its widest since mid June on Friday, as a selloff in equities

accelerated.

(Reporting by Amanda Cooper; Editing by xxxxx)