UPDATE 2-Euro zone bond yields pull back from multi-month highs

* German 10-year yield hits day's high after Hansson comment

* Respite for euro zone bonds after sharp selloff

* Bund yields edge off 5-month lows

* Euro zone periphery govt bond yields http://tmsnrt.rs/2ii2Bqr (Updates prices, rewrites throughout)

LONDON, Jan 15 (Reuters) - Euro zone borrowing costs pulled back from multi-month highs on Monday, after a hefty selloff last week on expectations the European Central Bank might end its massive stimulus programme sooner than anticipated.

The ECB could end its 2.55 trillion euro ($3.13 trillion) bond purchase scheme in one step after September if the economy and inflation develop as now expected, ratesetter Ardo Hansson told German newspaper Boersen Zeitung late on Monday.

Germany's 10-year government bond, the benchmark for the region, hit its day high at 0.528 percent after Hansson's comments. It was however still short of the five-month high hit on Friday at 0.54 percent.

Investors started to bring forward their ECB rate hike expectations last week, and hints of a quick end to the bond buys could further bolster market bets as the Bank has long linked future rate moves with the end of its quantitative easing scheme.

The ECB has said the first move would come "well past" the end of bond purchases, a signal markets have taken to mean around three to six months.

Sentiment towards fixed income has taken a hit after a week of heightened talk about an end to stimulus in Japan and the euro zone.

By late trade on Monday, most core 10-year euro zone government bond yields were down 0-2 basis points on the day, far from multi-months high reached last week.

Peripheral bond yields edged slightly higher. Italy's 10-year government bond yield went above 2 pct, while its Spanish peer inched up to 1.53 pct, up 2 bps on the day.

Earlier on Monday, the ECB ad reported it had bought a net 7.109 billion euros of public sector assets last week under QE, up from 2.495 billion a week earlier.

Analysts said heavy redemptions this week and less new issuance compared with last week also supported prices.

"There are chances for more selling but also reasons to be cautious," said Chris Scicluna, head of economic research at Daiwa Capital Markets.

"Inflation numbers in the euro zone this week should confirm the price story is not that different from last year and we are looking at the chance of a downward revision," he said, referring to the final release of euro zone December inflation data due on Wednesday.

But with oil hovering below three-year highs near $70, price pressures could pick up in coming months.

The five-year five-year breakeven forward rate - the key market gauge of long-term inflation expectations closely tracked by the European Central Bank -- rose to 1.7520 percent on Monday, a level not seen since Feb. 20.

(Reporting by Dhara Ranasinghe and Fanny Potkin; Editing by Jeremy Gaunt and John Stonestreet)