By Stefano Rebaudo (Reuters) -German 10-year government bond yields remained around multi-year highs on Wednesday while spreads widened ahead of a U.S. Federal Reserve policy meeting, and after European Central Bank board member Isabel Schnabel said a rate increase in July was possible. The Fed is expected to raise interest rates by half of a percentage point and announce the start of reductions to its $9 trillion balance sheet. The ECB need to raise interest rates as soon as July to stop inflation from getting entrenched, ECB policymaker Schnabel told German newspaper Handelsblatt. “Fundament…