* Euro zone periphery govt bond yields: tmsnrt.rs/2ii2Bqr (Adds details, updates prices) MILAN, Dec 22 (Reuters) - Euro zone government bond yields dipped on Tuesday, with the market lacking direction amid concerns about a new variant of the coronavirus and Brexit trade-deal uncertainty. The European Union’s Brexit negotiator said the bloc was giving a “final push” in a bid to strike a trade deal with Britain, with the two sides inching towards an agreement on fishing, though the issue remained unresolved. That followed a call between European Commission President Ursula von der Leyen and British Prime Minister Boris Johnson. On top of the Brexit uncertainty, countries across the globe shut their borders to Britain on Monday on fears of a highly infectious new variant of coronavirus, boosting safe-haven assets including German government bonds. The EU executive on Tuesday recommended member states roll back the border closures to allow freight to resume. After Monday’s rally, which saw German 10-year yields fall over 4 basis points at one point, analysts forecast yields would move sideways in the Christmas period as the European Central Bank has paused its bond purchases between Dec. 18 and Jan. 4. With such demand temporarily missing from the market, few investors are expected to be keen to build positions. Trading on Tuesday seemed to reflect that view, with benchmark German 10-year government bond yields down around 1 basis point in late trade at -0.59%. “There is a lot of back and forth in the market and this is going to be the trend for the time being. Virus worries continue to weigh while we are waiting for progress on a possible Brexit deal,” Antoine Bouvet, a senior rates strategist at ING, said. The Italian 10-year bond yield was last down 2 basis points to 0.52% after rising earlier. “Factors impacting the markets are virus trajectories and lockdowns. Besides, investors have been positioning for a couple of weeks with low liquidity and possible volatility as ECB will be pausing purchases,” Mauro Valle, head of fixed income at Generali Investments Partners. British 10-year gilt yields were down 2 basis points after a big drop on Monday. Data showed Britain’s economic recovery was a bit quicker than previously thought in the July-September period, while government borrowing soared. A long-anticipated approval of U.S. stimulus failed to trigger price action as it fell short of hopes that a deal could be as large as $2 trillion. The U.S. Congress on Monday approved an $892 billion coronavirus aid package, throwing a lifeline to the nation’s pandemic-battered economy after months of inaction, while also keeping the federal government funded.