LONDON, Oct 21 (Reuters) - Euro zone government bond

yields were steady on Tuesday as worries about the health of

U.S. regional banks and the recent flare up in U.S.-China trade

tensions eased, while attention turned to speeches from the

bloc's rate-setters.

European Central Bank chief Christine Lagarde and other

policymakers are scheduled to speak later in the day, one of the

last opportunities to shape policy before a blackout period

begins on Thursday ahead of next week's rate setting meeting.

Germany's 10-year bond yield was down less than

1 basis point (bp) at 2.579%, having dropped to its lowest since

June at 2.523% on Friday.

The yield on the euro zone benchmark fell for a fourth

straight week last week as investors sought safe-haven assets

due to concerns about the U.S. government shutdown, the trade

spat with China and signs of U.S. credit stress. Bond yields

move inversely to prices.

France's 10-year yield was down about 1 bp at 3.357%,

keeping the spread over the 10-year German yields

at 78.6 bps.