LONDON, May 9 (Reuters) - Euro zone bond yields ticked

higher on Thursday, in subdued trading due to public holidays in

many European countries, with investors focused on the Bank of

England's interest rate decision later in the day.

German 10-year bond yield, the benchmark for the

euro zone bloc, rose 2.3 basis point to 2.48%.

Italy's 10-year yield was higher by 2.8 bps at

3.83%, and the gap between Italian and German yields

widened 1 bp to 133 bps.

The spread between U.S. 10-year Treasuries and German bunds

narrowed 1.4 bps to 202 bps.

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

sensitive to European Central Bank rate expectations, was little

changed at 2.94%.