LONDON, July 19 Reuters Euro zone government bond yields edged down on Tuesday, as bond markets took comfort from a pullback in lofty gas prices while keeping one eye on how political turmoil in Italy unfolds.

And with the European Central Bank expected to lift interest rates for the first time since 2011 when it meets on Thursday and unveil details of a new tool to contain stress in bond markets, investors appeared reluctant to push yields too far in one direction or another.

Germany39;s benchmark 10year Bund yield is down almost 20 basis points bps so far this month, setting it up to break a sevenmonth rising streak.

Concern about European gas supplies has stoked recession fears, and as it replaced inflation at the top of investors39; worry list bond yields have pulled back from multiyear highs.

News on Monday that Gazprom has invoked force majeure on some gas supplies has raised fears that Russia will keep the Nord Stream 1 pipeline closed beyond July 21, when the annual maintenance period ends.

Still, European gas prices on Monday fell to their lowest in over a week with analysts saying a significant degree of bad news is now priced in by markets.

German Bund yields were down 2.5 bps in early trade at 1.19 . Italian borrowing costs were also lower, with 10year bond yields down 3 bps at 3.34 .

Fresh political upheaval in Italy has weighed on Italian bonds, but with no fresh news to drive markets, a modest recovery appeared to be taking hold.

For gas and BTPs…