(Adds ECB minutes, comment, updates prices) LONDON, Aug 26 (Reuters) - Euro zone government bonds stood by the previous session’s sell-off and consolidated one-month highs on Thursday as some investors quit their long positions ahead of new supply in September and the U.S. Federal Reserve’s summit on Friday. German and Italian 10-year yields had their biggest one-day rise in nearly six months on Wednesday, in a move which analysts said was due to a combination of factors, including investors dumping bonds before the Jackson Hole, Wyoming, conference and two European Central Bank officials sounding upbeat about the euro zone economic outlook. On Thursday, this move continued to a lesser extent, with the German 10-year yield briefly reaching a new one-month high of -0.402%. At 1545 GMT, Germany’s benchmark 10-year yield was just slightly up at -0.413% but above the high of -0.415% reached on Wednesday. Accelerating inflation and rising COVID-19 cases made German consumers more hesitant to buy in September, the GfK consumer sentiment index survey showed. Italy’s 10-year yield was just marginally up at 0.67%, having hit 0.69% - its highest since July 22 - earlier in the session. There was little reaction to the accounts of the European Central Bank’s July 22 meeting which showed policymakers changed the bank’s proposed interest rate guidance on several key points to soothe an extensive range of concerns and objections. The ECB will next meet on Sept. 9 and will have to decide whether to maintain an elevated volume of bond purchases or allow them to decline given a drop in yields and a weakening of the euro since the last policy meeting. “We continue to think that the ECB will stick with the current EUR 1850bn PEPP envelope, which still has plenty of firepower left”, commented Nordea analyst Jan von Gerich. “The ECB’s continued support will limit the upside for bond yields, and given that the Fed is set to proceed faster in removing exceptional stimulus, we see plenty more downside for the EUR/USD”, he added. Market attention this week has been largely focused on the annual Jackson Hole, Wyoming, conference, and the possibility that Federal Reserve Chair Jerome Powell’s speech will contain hints about his stance on tapering asset purchases. U.S. Treasury yields rose to two-week highs after St. Louis Federal Reserve President James Bullard called for the U.S. central bank to begin paring bond purchases soon. Many investors have nevertheless lowered their expectations that Powell will make market-moving comments. (Reporting by Elizabeth Howcroft and Julien Ponthus; editing by Emelia Sithole-Matarise, Bernadette Baum and Jonathan Oatis) Our Standards: The Thomson Reuters Trust Principles.