Aug 30 (Reuters) - Euro zone bond yields were little

changed on Friday as investors awaited bloc-wide inflation

figures after soft German inflation data in the prior session

raised the prospect of more interest rate cuts by the European

Central Bank this year.

The German 10-year bond yield, the benchmark for

the euro zone, slipped 0.8 basis points to 2.28%, while the

interest rate sensitive two-year bond yield was

little changed at 2.36%.

The two-year German yield fell to a three-week low of 2.33%

on Thursday after data showed German inflation fell more than

expected in August.

While traders were almost fully pricing in the chance of a

25-basis-point rate cut by the ECB in September, the odds of

another such move in October rose to 60% following the German

data.

Italy's 10-year yield was lower by 0.5 basis

points​ (bps) at 3.66%, and the gap between Italian and German

bunds was at 138 bps.