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Euro zone yields near recent lows as weak U.S. data, virus cases boost safe-haven appeal

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* Euro zone periphery govt bond yields http://tmsnrt.rs/2ii2Bqr

Aug 3 (Reuters) - Euro zone bond yields held near recent lows on Tuesday, as risk sentiment was hurt by subdued U.S. economic data and rising cases of the Delta variant of the coronavirus.

Data from the Institute for Supply Management on Monday showed U.S. manufacturing slowed in July for the second straight month. That sent 10-year U.S. Treasury yields below the critical 1.20% level and they held below it in early London trade on Tuesday.

Bond yields move inversely with prices.

Sentiment was also weakened by a rise in fresh cases of the coronavirus' Delta variant, denting stock markets and supporting safe-haven currencies like the Swiss franc and the yen.

The rally in U.S. Treasuries, which are closely correlated with euro area bonds, pushed yields lower too on Monday and markets remained supported on Tuesday.

Germany's 10-year yield, the benchmark for the euro zone, fell to a new low since early February at -0.486%. It was last up less than a basis point to -0.47% by 0700 GMT.

Its 30-year yield, which turned negative and sent the whole German yield curve into negative territory on Monday, was hovering around 0%.

With little data coming out of the euro zone, focus was on June factory and durable goods orders data out of the U.S. due at 1400 GMT.

The data is "not something we expect could upset the current status quo of falling yields in illiquid markets," ING analysts wrote in a note.

In the primary market, Austria plan to raise 1.495 billion euros ($1.77 billion) from an auction of bonds due 2025 and 2031.

($1 = 0.8423 euros)

(Reporting by Yoruk Bahceli; Editing by Rashmi Aich)