* Euro zone periphery govt bond yields http://tmsnrt.rs/2ii2Bqr
By Yoruk Bahceli
June 25 (Reuters) - Euro zone bond yields steadied on Friday ahead of U.S. inflation data which will give the latest steer on price pressures as economies bounce back from the coronavirus slump.
Following a hefty sell-off last week after U.S. Federal Reserve policymakers brought forward their first projected rate hike to 2023 from 2024, euro zone bond markets calmed this week as they adapted to the Fed's messaging.
Germany's 10-year yield, the benchmark for the euro area, is set to end the week a mere 2 basis points higher this week after a 7 bps rise last week.
With little data coming out of the single currency bloc, euro area bond yields were steady in early Friday trade.
Germany's 10-year yield was unchanged at -0.18% at 0716 GMT, and Italian 10-year yields were up less than a basis point at 0.87%.
Attention turns on Friday to the U.S. core personal consumption expenditure index reading due at 1230 GMT, which economists polled by Reuters expect to post its fastest rise in nearly three decades, with a year-on-year rise of 3.4%.
"Today, the focus will shift back to U.S. inflation with the core PCE due for release," said Michael Leister, head of interest rates strategy at Commerzbank.
"Markets should be well prepared for a strong print as most of the sub-components have already been published."
Consumer price data rising at its fastest pace in 13 years in May had failed to drive a strong reaction from bond markets earlier in June. U.S. initial unemployment benefits and durable goods orders also came in weak on Thursday.
In the primary market, Italy will raise up to 3.75 billion euros from the auction of a bond due Nov 2022 and an inflation-linked 30-year bond in an auction.
That follows the sale of a seven-year floating-rate note which raised 6 billion euros on Thursday via syndication.
A significant global bond market correction is likely in the next three months as central bankers eye the exit door from pandemic emergency policy, according to a Reuters poll of strategists who also forecast modestly higher yields in a year.
(Reporting by Yoruk Bahceli; Editing by Toby Chopra)