* Euro zone periphery govt bond yields tmsnrt.rs/2ii2Bqr AMSTERDAM, Dec 17 (Reuters) - German bond yields edged up in early Thursday trade, ahead of the country’s bond issuance outlook for next year. After a record level of bond issuance this year, Europe’s benchmark bond issuer is expected to raise double the new debt -- at nearly 180 billion euros -- it initially envisaged for 2021. Commerzbank analysts expect the release around 0900 GMT. German 10-year yields were up one basis point in early trade, at -0.56%, just off one-week highs touched a day earlier. “Looking at the underperformance of Bunds versus other developed markets and in particular versus swaps yesterday, it appears that some of that could be also be owed to the market anticipating a significantly higher bond issuance volume of up to €280bn,” ING analysts told clients. Euro zone bond yields led by Germany jumped on Wednesday after better-than-expected business sector data readings for December, which pushed the country’s 10-year yield up some 5 basis points, their biggest daily jump in over two weeks. “However, much will also depend on the split between short-term money market funding, which was wound down again this quarter, and the longer term bond market,” ING analysts said. A 50-50 split between the two segments would lead to issuance closer to 240 billion euros, they said. Positive risk sentiment on the back of progress on U.S. stimulus, where negotiators were closing in on a $900 billion COVID-19 aid bill, and hopes for a Brexit trade deal probably also hurt safe-haven bonds. There was little impact on euro zone bonds from the U.S. Federal Reserve meeting, which said it would maintain its current bond-buying policy until significant progress in the U.S. economic recovery is made. That led to only a modest steepening of the Treasury yield curve. The gap between U.S. and German 10-year yields was at 149 basis points, just off its lowest in nearly two weeks.