LONDON, July 21 Reuters Borrowing costs across the euro area were a touch lower on Wednesday, holding near the multimonth lows hit the previous day, with sentiment towards fixedincome markets holding firm in the face of global growth concerns.

Longdated sovereign bond yields in the United States and Europe have fallen 710 basis points this week as a surge in COVID19 variants adds to a sense that economic growth has now peaked and that any pickup 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.

In early trade, Germanys benchmark 10year bond yield was down just one basis point at 0.42, holding near Tuesdays more than fivemonth lows of 0.44.

Thirtyyear 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 30year German bonds later this session could be a test of investor appetite for longdated bonds after the recent surge in prices and fall in yields.

A note of caution was also expected to set in as Thursdays European Central Bank ECB meeting looms. The ECB is widely expected to change its forward policy guidance to…