Euro zone bonds track muted US Treasuries as Powell reiterates cautious path

Sept 24 (Reuters) - Euro zone bond yields were steady on Wednesday, tracking subdued U.S. counterparts after Federal Reserve Chair Jerome Powell reaffirmed a cautious approach on future rate decisions amid the twin risks of high inflation and a softer U.S. labour market.

Germany's 10-year bond yield, the benchmark for the euro zone, was a touch lower on the day at 2.742%.

Other regional bond yields, such as those for France and Italy, were trading in line with German debt, with moves at the long-end of the yield curve muted as well. Germany's 30-year bond yield eased slightly to 3.34%.

U.S. 10-year and 30-year Treasury yields , meanwhile, dipped to 4.102% and 4.714%, respectively.

Powell said on Tuesday that the Fed needed to continue balancing the competing risks of high inflation and a weakening job market at its next meetings, even as fellow policymakers offered differing views on the outlook for anchoring inflation and shoring up employment, two of the central bank's mandates.

Money markets are currently pricing in a near-92% chance of a Fed rate cut in October, according to CME's FedWatch tool.

With the data calendar relatively light in Europe following a mixed bag of business surveys on Tuesday, the focus will be on regional debt auctions and the release of U.S. personal consumption expenditure price data on Friday.

Italy is scheduled to sell 5-year and 10-year bonds worth up to 8.75 billion euros ($10.32 billion) in an auction on Friday.

($1 = 0.8482 euros) (Reporting by Jaspreet Kalra. Editing by Amanda Cooper and Mark Potter)