Jan 27 (Reuters) - Euro zone bond yields fell on Monday,

while investors readied for a string of central bank meetings

this week, where markets expect the European Central Bank to cut

interest rates.

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

the euro zone, fell 5 basis points (bps) to 2.496%. On Friday

the yield touched its highest since Jan. 16 at 2.569%.

Yields move inversely to prices.

Markets broadly expect the ECB to cut rates by 25 bps on

Thursday, while investors will listen for clues about potential

further reductions.

On Wednesday, the U.S. Federal Reserve is expected to hold

rates steady.

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

sensitive to ECB rate expectations, was down 4 bps at 2.251%.

Italy's 10-year yield was 2.5 bps​ lower at

3.632%, and the gap between Italian and German yields

widened 2 bps to 113 bps.