LONDON, Oct 27 (Reuters) - Euro zone bond yields edged

up to their highest in two weeks on Monday, as an apparent

cooling in trade tensions between the United States and China

drew investors away from safe-haven markets and into assets like

equities and crypto.

Benchmark German 10-year Bund yields rose 1.8

basis points to 2.643%, nudging at their highest since October

14. Yields have risen for four days in a row, the longest such

stretch since early September, as investors have grown

increasingly confident that the U.S. and Chinese governments

will iron out their disputes over trade and as quarterly

earnings paint a picture of fairly robust corporate health.

Friday's delayed release of U.S. consumer price data showed

inflation rose by less than expected in September, leaving

intact expectations for the Federal Reserve to cut rates by a

quarter point this week, but giving stock-market bulls

encouragement that price pressures are contained.

This week brings a slew of monetary policy decisions aside

from the Fed, including from the central banks of Japan and

Canada and the European Central Bank.

The ECB is widely tipped to leave rates unchanged. Markets

show traders do not expect any more changes from the ECB for the

next year, although ECB officials expressed caution around

build-ups of risk in financial markets, as stocks, gold and

crypto hover at, or around, record highs.

"Our economists think ECB President Lagarde will again

describe policy as "in a good place" and will be watching

whether she maintains the net hawkish tone that she struck in

July and September," Deutsche Bank strategist Jim Reid said in a

note.

Two-year German yields were steady around a

two-week high of 1.984%, having staged their biggest daily rise

since July on Friday. That was after surveys of business

activity showed momentum in the euro zone picked up more than

expected in October, while Germany's private sector saw its

largest rise in activity in over two years.

Meanwhile, French yields were roughly unchanged on the day,

at 3.45% for 10-year paper, after Moody's on Friday

left its rating of French debt unchanged, but revised its

outlook to "negative" from "stable".

In terms of new government bond supply, Germany, Belgium and

Italy will auction new debt this week. Commerzbank estimates

supply will account for some 25 billion euros ($29.16 billion),

up from around 6 billion last week, which might lift yields.

($1 = 0.8575 euros)