Oct 17 (Reuters) - Euro area government bond yields

edged higher on Friday, pulling back from multi-month lows, as

Wall Street futures trimmed losses after U.S. President Donald

Trump confirmed his meeting with Chinese President Xi Jinping

was still on.

Earlier in the session, yields fell across the bloc, with

German Bunds still on track for a fourth straight weekly gain,

as investors sought safe-haven assets amid mounting concerns

over the U.S. government shutdown, renewed trade tensions, and

fresh signs of credit stress in the U.S. banking sector.

Trump said on Friday his proposed 100% tariff on goods from

China would not be sustainable, adding that he would meet with

Chinese President Xi Jinping in two weeks and that he thought

things would be fine with China.

U.S. bank stocks, including Zions Bancorporation, Jefferies,

and Western Alliance, fell sharply on Thursday as investors grew

uneasy about risk in the sector, which has been shaken by

exposure to two auto bankruptcies.

Germany's 10-year Bund yields, the bloc's benchmark, were

flat at 2.57%, after hitting 2.523% early in the session, their

lowest since June 25. They were set to end the week 6 basis

points lower, in their fourth straight weekly fall.

Italy's 10-year bond yields were 1.5 bps higher

at 3.37%, after hitting a fresh 10-month low of 3.342%.