* Bunds rise after Friday's losses, seen oversold after U.S. jobs * Ten-year German yields at low end of recent ranges * Expectations for euro zone meeting low By Ana Nicolaci da Costa LONDON, Oct 8 (Reuters) - German Bund futures rebounded on Monday as investors bought back into a cheapened market after the previous session's selling but trade was range-bound in a quiet day and with investors reluctant to place big bets before a euro zone meeting. Bund futures were 42 ticks higher on the day at 141.29, having fallen 80 ticks on Friday as a surprise drop in U.S. unemployment underpinned appetite for riskier assets. "We had a fairly decent sell-off on Friday after the (U.S. non-farm) payrolls but already on Friday in late trading we saw a bit of a come-back. So apparently the market doesn't seem to be too convinced here by this move," Michael Leister, senior interest rate strategist at Commerzbank said. "Overall, it looks like a technical market at the moment. Ten-year yields are hovering around the 1.50 (percent) area." Ten-year German bond yields fell 3.6 basis points to 1.48 percent towards the lower end of a 1.40-1.80 percent range held in recent weeks, according to Leister. "If we push towards 1.45 we could easily test this 1.40 level. But for the time being, given that we don't see that much movement away from this 1.50 level... the market is watching this level and waiting for further clues to provide action." The volume of trading was expected to be thinner than usual due to a holiday in the United States. There is also lingering uncertainty over the timing of a possible Spanish bailout that would likely trigger European Central Bank bond buying. A meeting of euro zone finance ministers on Monday was expected to shed little light on the issue. Euro zone finance ministers will formally launch the euro zone's permanent, 500 billion euro bailout fund on Monday, and will also discuss an expected request by the Spanish government for a precautionary credit line from the ESM. Expectations Spain will ask for aid has taken yields on Spanish bonds sharply lower in recent months, but analysts say for them to remain low, action is necessary. RISK AVERSION On Friday, the U.S. unemployment rate unexpectedly dropped to 7.8 percent in September and reached its lowest level since President Barack Obama took office. But analysts said the number was not enough to dispel fears about the global growth outlook, with signs that China is slowing and as the euro zone continued to struggle with the debt crisis. "The market was probably a little bit oversold on the back of the non-farm number (U.S. jobs numbers) on Friday," one trader said. "I went long after the dip on the non-farm. Historically, if you get a big move one way or the other it always retraces itself within 24 to 48 hours." Rabobank expected a "risk off" tone in the market to continue and for the spreads between the debt issued by lower-rated sovereigns and Germany to widen. For now, the 10-year Spanish/German bond yield spread was little changed at 419 basis points and ten-year bonds were higher on the day, with yields 3.5 bps lower at 5.67 percent.

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