LONDON, Nov 19 (Reuters) - Euro zone yields held near

multi-week highs on Wednesday as investors eyed stock markets,

where a fresh selloff could trigger a rush into safe-haven

government bonds.

Stocks struggled to make headway as a bout of nerves over AI

valuations held back investors ahead of an earnings update from

chip titan Nvidia.

Germany's 10-year yields, the euro area's

benchmark, dropped 0.5 basis points (bps) to 2.70%. It hit

2.718% early this week, its highest since October 7.

Investors also awaited October's final inflation data and

flash wage figures due later in the session.

Benchmark 10-year U.S. Treasuries yields were up

2.5 bps to 4.56% after being down the day before as falling

stock markets boosted demand for the safe-haven bonds, while

markets kept pricing around a 50% chance of a Federal Reserve

rate cut next month.

Traders priced in about a 30% chance of a 25-basis-point

move by September while they expected the

key rate to be at 1.95% in March 2027 from the current 2%.

Germany's 2-year yields, more sensitive to

expectations for ECB policy rate outlook, fell 0.5 bps to 2.02%.

They hit 2.051% early this week, their highest level since March

28.

Italy's 10-year government bond yields were down

one bp at 3.45%, while their gap over safe-haven German Bunds

- a key gauge of the extra return investors demand

to hold Italian debt instead of safe-haven German bonds - was at

75 bps, after hitting a fresh 15-year low at 70.68 bps.