LONDON, Oct 1 (Reuters) - Euro zone bond yields held

steady on Tuesday before the release of September inflation data

for the single-currency bloc, which is expected to show price

growth cooled further this month.

Data on Monday showed that German inflation cooled more than

anticipated in September to 1.8% month-on-month, boosting

expectations that the euro zone-wide figure will fall below the

European Central Bank's 2% target. The euro zone data will be

released at 0900 GMT (1100 CET).

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

the euro zone bloc, fell 1.5 basis points (bps) to 2.12%. Yields

move inversely to prices.

Italy's 10-year yield was lower by 1.8 bps at

3.44%, and the gap between Italian and German yields

stood at 132 bps.

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

sensitive to European Central Bank rate expectations, was little

changed at 2.07%.

It fell to its lowest since December 2022 on Monday at

2.046% as money markets moved to price in an 80% chance of

another ECB rate cut in October.