LONDON, March 15 (Reuters) - Euro zone government bond
yields rose on Friday, putting them on course for chunky gains
for the week, after two U.S. data reports showed inflation came
in stronger than expected earlier in the week.
** Germany's 10-year government bond yield, the euro
zone's benchmark, was up 1 basis point (bp) at 2.431%, on track
to rise 16 bps across the week.
** Italy's 10-year yield was 4 bps higher at 3.712%,
set to rise 13 bps for the week.
** The gap between Italian and German 10-year bond yields
widened to around 126 bps after falling to its lowest in well
over two years on Thursday at 115 bps.
** The economic calendar is light, with investors looking to
next week when the Bank of Japan, Federal Reserve and Bank of
England set interest rates.
** German 2-year bond yields, which are more
sensitive to interest rate expectations, were up 1 bp at 2.895%,
on track to rise 16 bps for the week.