Oct 19 (Reuters) - Euro zone bond yields steadied on Tuesday as developed bond markets calmed after a hefty sell-off a day earlier. On Monday, euro area yields moved sharply higher, following British government bond yields in particular -- short-dated British government bond yields had spiked as investors accelerated their bets on back-to-back Bank of England rate hikes in November and December. But markets calmed on Tuesday and short-dated bond yields moved marginally in the U.S. Treasury and UK gilt markets. Germany’s 10-year yield, the benchmark for the bloc, was unchanged at -0.15% by 0714 GMT. The gap between 10-year Italian and German bond yields dropped to around 103 bps, after rising to 107 bps on Monday. The focus on Tuesday will be on European Central Bank speakers. Caught up in Monday’s sell-off, money markets moved to price in a full 10 basis point rate hike by the bank by September 2022, up from a full hike in December 2022, which investors say is inconsistent with the ECB’s inflation projections. They also note that genuine concern about a hike by the ECB next year would have caused much sharper moves on spreads on Southern European bonds, which are only marginally higher, and a meaningful rise in the bloc’s “real” yields on inflation-linked bonds, which are near record lows. ECB policymaker and French central bank chief Francois Villeroy de Galhau said there is no reason that the bank should increase rates between now and the end of next year. Several other speakers are lined up, but focus will particularly be on chief economist Philip Lane at 1400 GMT. “The focus today is on whether Philip Lane will answer the question of whether there is rising unease about the rapid increase in yields as money market forwards,” UniCredit analysts told clients. Investors will also watch several speakers from the Bank of England and the U.S. Federal Reserve, as moves in euro area bonds have been largely driven by their respective bond markets. In the primary market, Finland will raise up to 1 billion euros from the re-opening of a 10-year bond at auction. Reporting by Yoruk Bahceli, Editing by Timothy Heritage