LONDON, Nov 5 (Reuters) - Euro zone government bond

yields steadied on Wednesday, with strong euro zone PMIs in

focus, as risk-off sentiment prevailed in markets following a

stocks sell-off prompted mainly by concerns over high tech

valuations.

"Obviously all of it seems to be part of this risk-off

response that we've had this week, which to me seems to be

profit-taking in stocks," said Evelyne Gomez-Liechti,

multi-asset strategist at Mizuho International.

German 10-year Bund yields, which fell 1

basis point on Tuesday, were little changed at 2.646%. Two-year

yields, which are the most sensitive to shifts in

inflation expectations and the outlook for monetary policy, were

also steady at 1.998%.

Gomez-Liechti also flagged more supply coming from

France and Spain on Thursday as potentially weighing on the

long-end, as well as strong final PMIs out on Wednesday.

The euro zone economy expanded in October at its

fastest rate

since May 2023, breaking out of the subdued growth pattern

seen earlier this year as service-sector activity accelerated

and demand conditions improved, a survey showed.

German services sector

grew substantially

in October, another survey showed, with the final HCOB

Germany services PMI rising to 54.6 in October, still in

expansion territory after a slightly lower reading of 51.5 in

September.

In terms of bond supply, the German government also sells 2

billion euros ($2.33 billion) in 15-year debt later in the day,

while investors will also be looking at the U.S. Treasury

Department's quarterly refunding plans for any details on how

the Trump administration plans to finance its deficits.

Meanwhile, the euro zone wage growth tracker released on

Wednesday showed wage growth slowing into 2026, then rising back

to still modest levels, supporting the European Central Bank's

projection for moderate consumer price pressures.

That came after the ECB left rates unchanged last week

at a regular review, reiterating that monetary policy was "in a

good place".

Speaking at a conference on Wednesday, ECB policymaker

Francois Villeroy de Galhau said the central bank must keep its

options open for interest rate moves at upcoming meetings.

The last report in September indicated a continued slowing

in wage growth, which was forecast to come in at 1.7% in the

first half of next year, below the ECB's 2% inflation target.

The U.S. government shutdown, now in its 36th day, has

starved the data calendar, which also leaves European investors

with far less certainty on the outlook for the broader market.

The premium at which U.S. 10-year Treasury yields trade

relative to those on German Bunds was around 142.8

bps on Wednesday, its narrowest for around a week.

($1 = 0.8575 euros)