LONDON - Euro zone bond yields held steady on Monday at the start of a week that will include the U.S. presidential election and a Federal Reserve interest rate decision.

Germany's 10-year bond yield, the benchmark for the euro zone bloc, was little changed at 2.408%.

Italy's 10-year yield fell 0.9 basis points​ to 3.671%, leaving the gap between Italian and German yields at 125 bps.

The 10-year U.S. Treasury yield fell 5 bps to 4.315% as investors reacted to a poll showing Democratic candidate Kamala Harris ahead of Republican Donald Trump in typically right-leaning Iowa ahead of Tuesday's election.

U.S. yields have risen in recent weeks in part because some investors have positioned for a Trump victory and a rise in inflation due to tariffs and tax cuts.

Germany's two-year bond yield, which is more sensitive to European Central Bank rate expectations, was up 3 bps at 2.304%.

(Reporting by Harry Robertson; Editing by Kirsten Donovan)