June 5 (Reuters) - Euro zone bond yields were little

changed on Thursday as markets eyed an expected interest rate

cut from the European Central Bank later in the day.

With the ECB widely expected to cut rates by 25 bps to 2%,

investors will focus on any indication of what comes after.

The market still anticipates at least one more cut by the

end of the year, bringing the deposit facility rate to 1.75%,

but it is factoring in only a 30% chance so far for a cut at the

central bank's next meeting in July.

"A downwardly revised inflation projection and a balance of

risks around the growth outlook, perhaps more clearly pointing

to the downside, would generally paint a dovish backdrop, but

given the uncertain environment around trade specifically, one

should not expect any concrete hints from President Lagarde,"

analysts at ING wrote in a note to clients.

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

euro area, was mostly flat at 2.52%. It fell to its lowest since

May 8 on Tuesday at 2.485%.

Germany's policy-sensitive two-year yield was

also unchanged at 1.79%, within its recent tight range.

The ECB has cut rates seven times in 13 months, as

inflation eased from post-pandemic highs, as it sought to

support a euro zone economy that was struggling even before U.S.

President Donald Trump's erratic economic and trade policy came

into the picture.

Markets have been rattled since Trump announced a slate

of tariffs on trading partners around the globe on April 2, only

to pause some and declare new ones, pushing investors to look

for alternatives to U.S. assets.

Italy's 10-year yield, the benchmark for the

euro area periphery, slid 2 bps at 3.482%, leaving the gap

between Italian and German yields at 93.6 basis

points.