(Updates at 1030 GMT)

By Harry Robertson

LONDON, Oct 14 (Reuters) - Euro zone bond yields were

little changed on Monday after climbing the previous week, as

investors looked ahead to an expected interest rate cut from the

European Central Bank on Thursday.

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

the euro zone, was last flat at 2.269%,

France's 10-year yield was also steady, in line

with the rest of the market even after ratings agency Fitch

revised France's outlook to "negative" from "stable" on Friday,

citing increases in fiscal policy and political risks.

The new French government delivered a 2025 budget last week

with plans for 60 billion euros ($65.68 billion) worth of

spending cuts and tax hikes on the wealthy and big companies to

tackle a spiralling fiscal deficit.

Fitch said that political fragmentation and a minority

government complicated France's ability to get its public

finances on a sounder footing.

"The fact that (French bonds) already trade at a level

consistent with a far lower rating meant that we expected the

market reaction to a negative outcome to be limited," Rabobank

analysts said in a note.

French bond yields rose sharply in June relative to German

yields ahead of parliamentary elections, which ended in an

unexpected victory for the left and a hung parliament.

U.S. bond markets were closed on Monday and the economic

data calendar was sparse, leaving investors looking towards the

ECB meeting on Thursday, where the central bank is expected to

cut rates by 25 basis points to 3.25%.

Investors will be looking out for any hints from the ECB

that confirm their bets that rates will fall further over the

next year.

"ECB President Christine Lagarde will probably not say

anything at the press conference in Slovenia to correct market

expectations for another 25 bp move on 12 December," said Holger

Schmieding, chief economist at Berenberg.

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

3.55%, and the gap between Italian and German yields

stood at 128 bps.

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

sensitive to ECB rate expectations, was down 1 basis point at

2.25%.