* Euro zone periphery govt bond yields tmsnrt.rs/2ii2Bqr LONDON, July 21 (Reuters) - Borrowing costs across the euro area were a touch lower on Wednesday, holding near the multi-month lows hit the previous day, with sentiment towards fixed-income markets holding firm in the face of global growth concerns. Long-dated sovereign bond yields in the United States and Europe have fallen 7-10 basis points this week as a surge in COVID-19 variants adds to a sense that economic growth has now peaked and that any pick-up in inflation will prove transitory. Still, the fast and furious moves of the past few sessions appeared to abate for now as a calmer tone settled on world equity markets. U.S. Treasury yields also appeared to stabilise overnight. ADVERTISEMENT In early trade, Germany’s benchmark 10-year bond yield was down just one basis point at -0.42%, holding near Tuesday’s more than five-month lows of -0.44%. Thirty-year bond yields fell a similar amount to 0.04% . They have fallen 8 bps this week to within striking distance of 0%. “The rally could be losing stream at these levels, but resilience in euro zone government bond markets looks set to extend,” said Christoph Rieger, head of rates and credit research at Commerzbank. Analysts said a sale of 30-year German bonds later this session could be a test of investor appetite for long-dated bonds after the recent surge in prices and fall in yields. A note of caution was also expected to set in as Thursday’s European Central Bank (ECB) meeting looms. The ECB is widely expected to change its forward policy guidance to reflect a new inflation target following the outcome of a strategy review earlier this month. The ECB now targets inflation at 2% versus close to but below 2% previously. Elsewhere, U.S. 10-year Treasury yields were steady in London trade at around 1.20%, holding above Tuesday’s five-month lows. Reporting by Dhara Ranasinghe Editing by Joe Bavier Our Standards: The Thomson Reuters Trust Principles.