March 18 (Reuters) - Eurozone government bond yields

edged up on Tuesday as investors awaited a German parliamentary

vote that could pave the way for a massive increase in state

borrowing to revive growth.

Germany's lower house of parliament is expected to vote

around midday after a morning debate on the plans that could

boost Europe's largest economy and stimulate growth across the

region.

Germany's constitutional court on Monday threw out new

challenges by opposition parties against the proposals of

conservative election winner Friedrich Merz to ease

constitutional debt rules - known as the debt brake - and set up

a 500-billion-euro infrastructure fund.

The German 10-year bond yield rose 2.6 basis

points to 2.826%. The benchmark for the euro zone rallied to its

highest since October 2023 last week after a big jump in early

March, when the plans were first announced.

Should the legislation pass the Bundestag lower house of

parliament, it still has to go to the Bundesrat upper house,

which represents the governments of the 16 states that make up

Germany.

Italy's 10-year bond yield was higher by 1.8

basis points at 3.87%, and the gap between the Italian and

German 10-year bond yields was 103 bps.

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

sensitive to European Central Bank rate expectations, was up 1.7

basis points at 2.197%.

Markets will also watch for data on Germany's investor

sentiment due to be released at 1000 GMT.