EURO GOVT-Italian and Spanish bond yields ease

LONDON, June 20 (Reuters) - Spanish and Italian government bond yields fell on Wednesday and Bunds extended losses as some "fast money" accounts positioned for more monetary stimulus from the U.S. central bank and for an improvement in sentiment towards euro zone peripheral issuers.

Italian 10-year government bond yields were 8 basis points lower at 5.85 percent, with the Spanish equivalent 9 basis points lower at 6.96 percent.

"Hedge funds are getting short Bunds and a bit bullish on the periphery waiting for some sort of resolution - a Greek coalition being formed, Spain's bailout, there's bits and pieces giving a bid for the periphery," one trader said.

German Bund futures were last 47 ticks lower on the day at 140.89.

The Federal Reserve is expected to launch a new round of monetary stimulus later on Wednesday..