Euro zone bonds steady; focus on US shutdown vote, jobs

LONDON, Nov 12 (Reuters) - Euro zone bond yields steadied on Wednesday, drawing some support from a rally in U.S. government debt, after weak jobs data bolstered the case for the Federal Reserve to cut interest rates next month.

Benchmark German 10-year Bund yields held steady around 2.66%, having ended the previous day down 1 basis point, after a U.S. private sector employment survey pointed to weakness in the labour market, which countered the optimism over the impending end to the government shutdown that had tempered bond yields for most of the day.

U.S. Treasury prices rallied overnight, which pushed the yield on the benchmark 10-year note down 2.3 bps to 4.087%. The U.S. bond market was closed on Monday for Veterans' Day.

Members of the House of Representatives will vote later on Wednesday on a deal that would restore funding to government agencies and end the 42-day-old shutdown.

Back in Europe, the 27 euro zone finance ministers meet in Brussels and will discuss the future of digital finance, the digital euro and stablecoin developments.

ECB member of the Executive Board Isabel Schnabel speaks at an event in London.

On the supply front, the German government will auction some 2.5 billion euros ($2.92 billion) in 2046 and 2056 debt.

"While some of the recent Bund auctions were technically uncovered, the fact that no more ultra-long supply is scheduled until next year should ensure decent demand," Commerzbank analysts said.

Thirty-year German bond yields were also stable at 3.254%.

The French parliament will vote on a social security financing bill later on Wednesday. French bond yields , which have hit two-year highs this year due to investor concern about the country's long-term finances, were steady around 3.424%. ($1 = 0.8575 euros) (Reporting by Amanda Cooper; Editing by Alex Richardson)