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UPDATE 2-Euro zone bond yields fall as safe-havens make a comeback

* Euro zone yields down 1-3 bps

* Risk-off backdrop supports bonds

* France, Spain hold bond sales

* Euro zone periphery govt bond yields http://tmsnrt.rs/2ii2Bqr (Recasts with move in bond yields)

LONDON, March 15 (Reuters) - Many bond yields in the euro zone fell to their lowest level since late January on Thursday, pushed down by political uncertainty, fears about a global trade war and expectations for a slow exit from European Central Bank's stimulus.

A clear signal from top ECB policymakers this week that they will only end asset buys when they are satisfied that inflation is on a sustained path towards its near 2 percent target has bolstered bond prices, pushing yields to multi-week lows.

That move has gained momentum as investors fret about the prospects of a global trade war, unexpected personnel changes in the U.S. administration, renewed tension between Russia and the West and political uncertainty in Italy.

"It the backdrop that's leading yields to drop, with cautious ECB policymakers speeches on Wednesday, concerns from investors about the U.S. trade war and Trump rebuilding his cabinet, as well as political reports from Italy about populist party negotiation," said ING rates strategist Benjamin Schroeder.

"All of this has favoured a risk-off sentiment in the market."

Across the euro zone, bond yields were down 1-3 basis points on the day.

Germany's 10-year bond yield fell to 0.57 percent , its lowest level in seven weeks. French and Dutch 10-year bond yields also fell to their lowest levels since January.

The strong momentum in regional bond markets meant that hefty bond supply from France and Spain was easily absorbed.

Spain sold around 4.95 billion euros in long-dated bonds, on the lower end of its target of 4.5-5.5 billion euros.

France sold the maximum of its targeted 6.5-7.5 billion euros in sale that saw a surplus of demand.

Elsewhere, Italy remained in focus a day after the leader of the far-right eurosceptic League said a government deal with the anti-establishment 5-Star Movement was possible after March 4's inconclusive election.

Analysts said the market remained sensitive to the prospect of a populist alliance with anti-euro sympathies forming the next government in Italy.

While the spread between Italian and German bonds has been relatively resilient, Italian bonds have seen some underperformance against their southern European peers in the wake of the vote.

The gap between 10-year Italian and Spanish bond yields is at 61 basis points and close to its widest in three weeks.

The Italian/Portuguese 10-year yield gap at 21 bps , is near its widest in seven weeks.

"The chance of a government of extreme parties being formed in Italy are still low, but the size of the tail risk in Italy just got fatter," said Peter Chatwell, head of European rates at Mizuho in London.

(Reporting by Fanny Potkin and Dhara Ranasinghe Editing by Alison Williams)