Nov 19 (Reuters) - Euro zone bond yields edged up on Friday after sharp falls in the previous session but remained near recent seven-week lows as a worsening COVID-19 situation in Europe raises the appeal of the safe-haven asset.

By 0803 GMT, Germany's 10-year yield, the benchmark for the bloc, was up 2 basis points at -0.26% after falling nearly 4 bps on Thursday.

Increasing demand for bonds to use as collateral going into year end is also holding down German bond yields, as there is a limited free float available to purchase.

Italy's 10-year yield was unchanged, keeping its closely watched yield gap with its German peer at 118 bps.

There is little data for markets to digest on Friday. The only scheduled release earlier showed German producer prices increased 3.8% month-on-month in October, far above the 1.9% rise forecast in a Reuters poll, in further evidence of growing inflationary pressures.

Investors will also focus on a flurry of central bank speakers later in the day. European Central Bank head Christine Lagarde will kick off at 0830 GMT, followed by ECB policymaker and German central bank governor Jens Weidmann at 1300 GMT.

There will also be speakers from the U.S. Federal Reserve and the Bank of England.

"With little else on the calendars today, central bank speakers will remain in the spotlight," ING analysts said.

Greece was also in the spotlight, with its credit ratings due to be reviewed by Moody's later on Friday. The agency rates Greece at Ba3, three notches below investment-grade level and the lowest among rating agencies.

"The last upgrade is one year old and in the meantime all other agencies have had positive rating announcements," said Christoph Rieger, head of rates and credit research at Commerzbank.

"Considering moreover the better-than-expected macro developments over the last year, a rating upgrade thus looks in store."

Greece's credit ratings are crucial since its junk ratings makes its debt ineligible for the ECB's conventional bond purchases. The ECB only buys the country's debt under its pandemic emergency purchase programme, having made an exception for Greece despite its junk ratings.

(Reporting by Yoruk Bahceli; Editing by Ana Nicolaci da Costa)