Euro zone bond yields edged up on Friday but benchmark German bonds were set for their best weekly performance in 3-1/2 months as the bloc’s coronavirus woes supported its safe-haven assets. Global government bond yields shot up in February on bets that a vast U.S. stimulus package would reignite economic growth and inflation. That pushed euro zone bond yields higher following U.S. Treasuries, causing concerns about a possible tightening of financial conditions in the bloc as it faces a weaker economic outlook. But with the European Central Bank increasing the pace of its asset purchases and attention turning to challenges linked to Europe’s slow vaccination rollout, its bond yields have fallen in March, in contrast to bond yields in the United States, which have continued to rise. Germany’s 10-year Bund yield, the benchmark for the euro zone, was up 2 basis points to -0.36% at 0810 GMT on Friday after falling to its lowest since mid-February on Thursday. Bunds continued to outperform U.S. Treasuries on Friday, where the 10-year yield was up 4 basis points in early London trade after a relatively weak seven-year auction on Thursday. Bond yields move inversely with prices. But down 7 basis points this week, 10-year Bund yields are set for their biggest weekly fall since the week ending Dec. 11. On the data front, European investors will be watching Germany’s Ifo survey at 0900 GMT, which is expected to show business morale rising in March, according to a Reuters poll. “Although we expect (Ifo) to improve, the impact on EGB yields is likely to be limited, as we observed on Wednesday following the release of stronger-than-expected PMIs,” UniCredit analysts told clients, referring to business activity surveys earlier inthe week. “Indeed, for the time being, it appears that European government bonds are being more influenced by the ongoing support of the ECB and negative news on the pandemic in Europe.” The focus of the European Central Bank’s asset purchases is shifting to bond prices from purchase volumes, ECB board member Isabel Schnabel said on Thursday, after its bond buying rose by a half last week. The comments suggest that the focus in the coming months will be on yield levels rather than a mechanical fulfillment of a purchase quota. But Schnabel pushed back on suggestions that the bank is now engaged in yield curve control -- a strategy where a central bank targets a specific rate on longer-term bonds and buys what is necessary to enforce it. (Reporting by Yoruk Bahceli Editing by Gareth Jones)