UPDATE 1-French yield near seven-month low as Macron awaits first rating review


* Some analysts expect outlook upgrade from Moody's

* Moody's rates France Aa2 with stable outlook

* Analyst says labour reform key for rating

* Euro zone periphery govt bond yields: http://tmsnrt.rs/2ii2Bqr (Updates prices, adds quote)

LONDON, June 23 (Reuters) - France's main government bond yield held near a seven-month low on Friday as some analysts predicted a boost for the country's credit rating at its first review since Emmanuel Macron won the presidency and a large parliamentary majority.

One of the big three ratings firms Moody's is set to publish its review for its Aa2 rating for France, for which it currently has a stable outlook, after European markets close.

Macron, who beat far-right leader Marine Le Pen in May's presidential run-off, has pledged to tackle unemployment, seen as one of the main hurdles to France's ailing economy. Through various labour reforms he aims to cut the jobless rate to levels not seen in more than two decades by the end of his term.

Moody's said on Monday that the parliamentary majority won on Sunday for Macron's 'En Marche!' eased that path to reform, which is credit positive for the rating.

"In France, a positive rating change by Moody's would be premature, but a move (on the) ... outlook seems possible given the better GDP growth outlook and subsiding political risks," said Christoph Rieger, rates strategist at Commerzbank.

France's 10-year bond yield was flat on the day at 0.6 percent on Friday, near a seven-month low of 0.578 percent hit nine days ago.

At about 34 basis points, the gap to the benchmark German equivalent was around the lowest since November.

Other euro zone bond yields were little changed on the day.

The chief economist at rival ratings firm S&P said this month that it is likely to raise its 1.5 percent growth forecast for France.

S&P is not scheduled to review its AA (stable) rating for France until October, but Fitch -- which also praised Macron's parliamentary majority this week -- will reassess its AA (stable) rating at the end of next month.

"(Macron's) labour reforms are going to be a key determinant of whether we see upward pressure ... in terms of France's rating," said Rabobank strategist Richard McGuire.

"There is certainly a lot of positive sentiment. That is all hope rather that reality and I suspect (ratings) agencies would want to see some of that reality before they make a move."

Moody's is also due to review its Aaa rating for Germany and its Caa3 rating for Greece on Friday. Analysts at DZ Bank are calling for an upgrade to Caa2 for Greece after the country secured a debt deal with creditors this month.

For Reuters Live Markets blog on European and UK stock markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.bi z / c m s / ? p a g e I d = l i v e m a r k e t s (Editing by Toby Chopra and David Goodman)