Feb 26 (Reuters) - Euro zone government bond yields

edged up on Wednesday from their lowest level in over a week, as

traders continued to weigh the prospect of increased European

defence spending, while digesting a rebound in U.S. Treasury

yields.

The U.S. House of Representatives advanced President Donald

Trump's tax-cut agenda late on Tuesday, which made U.S. Treasury

yields regain some ground.

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

the euro zone bloc, rose one basis point (bp) to 2.463%, after

the yield fell to 2.446% on Tuesday, its lowest since February

17.

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

widened again by 1.8 bps to 185.6 bps, after

narrowing to multi-month lows on Tuesday.

Italy's 10-year yield was higher by less than

one bp at 3.53%, and the gap between Italian and German yields

stood at 106 bps.

(Reporting by Greta Rosen Fondahn

Editing by Ros Russell)