LONDON, Nov 7 (Reuters) - Euro zone government bond

yields nudged higher on Friday with the German benchmark yield

hovering around a one-month high, albeit firmly in the middle of

its range this year.

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

was last up 2 basis points at 2.68%, its highest since October

10.

It has been ticking higher in recent days, as investors

become even more confident after the European Central Bank

meeting last week that it will keep rates on hold in coming

months.

Investors have also wavered over bets on the Federal Reserve

easing policy in December, as the U.S. central bank grapples

with a lack of economic data due to the government shutdown,

causing Treasury yields to move higher.

Broadly speaking, however, the German 10-year yield is where

it has averaged all year. ING analysts said in a note it had

"happily mean-reverted around" 2.6%.

They think, however, with the ECB now firmly on hold, and

more German debt issuance upcoming, it should head towards "the

2.75% to 3% area".

Other euro zone yields were largely moving in line with the

benchmark. The French 10-year yield was up 2 bps at 3.47% and

the Italian up nearly 2 bps at 3.43% .

Both were at their highest since mid-October.