LONDON, July 4 (Reuters) - Euro zone bond yields were

lower on Friday as the recovery in the bloc's bond markets

continued following the gilt-induced sell-off on Wednesday,

while focus was turning to U.S. President Donald Trump's April 9

tariff deadline.

Germany's 10-year benchmark bund yield was down

3.5 basis points (bps) at 2.546%, having risen to an almost

six-week high on Wednesday of 2.632% when Britain's gilt yields

jumped due to renewed fiscal sustainability concerns. Bond

yields move inversely with prices.

Britain's 10-year gilt yield was down 2.5 bps on

Friday at 4.522%, having risen as high as 4.681% on Wednesday.

Wednesday's sharp collapse in British government bond prices

immediately drew comparisons with former prime minister Liz

Truss' short-lived premiership, sparked by a U-turn on cuts to

welfare spending and a tearful appearance by finance minister

Rachel Reeves in parliament.

Euro zone bonds had slipped in tandem with their British

counterparts, led by those countries with shaky public finances

themselves, such as France and Italy, but those bond markets

were also recovering.

France's 10-year yield was down 2 bps at 3.258%,

while Italy's was down 2.5 bps at 3.455%.

The spread between Italian and German 10-year yields

stood at about 90 bps.