Jan 6 (Reuters) - German Bund futures edged lower on Friday after large gains in the previous session and ahead of key U.S. jobs data which is expected to reinforce confidence in the U.S. economic recovery. But any sell-off would be limited by ongoing worries over the euro zone's ability to over come its crisis, which has recently taken its toll on the euro. A key test for market sentiment will come next week when Spain and Italy issue bonds. The threat of a mass downgrade also continued to overshadow euro zone debt markets even though analysts say the move has already been widely priced in. "I will stick to my view that things are going to blow up (in the euro zone)," said a trader. "Maybe payrolls is going to be alright but I think we are still looking to buy dips." The German Bund future was 11 ticks lower at 138.68 having closed 70 ticks higher on Thursday. "Despite yesterday's improvement buying interest in Bunds has repeatedly stalled above 139.00 since September," Pia First said in research note. Nonfarm payrolls is expected to have risen 150,000 last month, according to a Reuters survey, after increasing 120,000 in November. That should cement a view that U.S. economic growth accelerated in the fourth quarter but the economy would need even faster job growth over a sustained period to make a noticeable dent in poll of millions of Americans who remain either out of work or underemployed..

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