LONDON, Sept 12 (Reuters) - Euro zone government bond

yields, the euro and European stocks held steady on Thursday

after the European Central Bank cut its main interest rate for a

second time in three meetings, in line with expectations.

The euro was last at $1.1019, up less than 0.1%.

The German 10-year bond yield, the benchmark for

the euro zone, was little changed after the decision at 2.124%,

up two basis points on the day.

The pan-European benchmark STOXX 600 index held

gains and remained higher by 1.1%, while an index of euro area

banks was up 1.8%.

Attention was now set to turn to the post-decision press

conference from ECB President Christine Lagarde at 1245 GMT.