Euro zone bonds enjoy cooler U.S. inflation, yields at one-month lows

LONDON, May 16 (Reuters) - Euro zone bond yields sat at one-month lows on Thursday as bonds around the world were helped by U.S. data a day earlier that showed inflation eased slightly in April.

The data supports bets the Federal Reserve can cut rates twice this year and, in turn, makes life easier for the European Central Bank, which is likely start its rate cut cycle next month.

German 10-year bond yield, the benchmark for the euro zone bloc, fell 2 basis points to 2.4%, its lowest since April 15. It dropped nearly 12 basis points on Wednesday.

The U.S. consumer price index rose 0.3% last month after advancing 0.4% in March and February, the Labor Department's Bureau of Labor Statistics said Wednesday. Excluding the volatile food and energy components, CPI rose 0.3% in April after advancing 0.4% for three straight months.

Italy's 10-year yield was lower by 2.4 basis points​ at 3.71%, also a one month low, after dropping 16 bps on Wednesday, its biggest one-day fall in a year.

The gap between Italian and German bunds widened 1.6 basis points to 130 bps

Germany's two-year bond yield, which is more sensitive to European Central Bank rate expectations, was little changed at 2.88%, again its lowest since April 15. (Reporting by Alun John Editing by Ros Russell)