MILAN, April 22 Reuters Euro zone government bond yields were broadly unchanged on Thursday ahead of a European Central Bank ECB policy meeting, with investors looking for clues on how the central bank will react to an expected economic recovery.

The blocs borrowing costs tracked U.S. Treasury yields, flat after falling in early London trade as an auction of 20year bonds showed strong demand on Wednesday.

The ECB will likely be pressed on signs of divisions over the future pace of bond purchases, which have been stepped up recently to prevent a rise in borrowing costs from derailing the recovery.

Germanys 10year government bond yield, the benchmark for the euro area, was flat at 0.26.

ECB President Christine Lagarde said recently the European economy was still standing on crutches, and stimulus could not be withdrawn.

The focus at todays ECB press conference looks set to turn to the reduction and eventual winding down of the PEPP Pandemic Emergency Purchase Programme purchases, Commerzbank analysts told clients.

According to Mohammed Kazmi, portfolio manager at Unione Bancaire Privee UBP, Lagarde will remain consistent with her dovish comments despite what we see as an improving outlook.

Some analysts have recently flagged concerns about a possible hawkish mistake by the ECB in June following good news about the European economy.

The ECB is unlikely to dismiss the possibility of taper in June, likely leaving our bearish tactical bias intact, Citi analysts…