LONDON, June 3 (Reuters) - Euro zone bond yields were

little changed on Monday as investors waited for a decision by

the European Central Bank on Thursday, when policymakers are

likely to cut interest rates from the current record high of 4%.

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

the euro zone bloc, was roughly flat at 2.643%.

Italy's 10-year yield was lower by 1 basis point

(bp) at 3.951%, and the gap between Italian and German yields

narrowed slightly to 130 bps.

The spread between U.S. 10-year Treasury and German bund

yields held steady at 184 bps.

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

sensitive to European Central Bank rate expectations, was little

changed at 3.091%.