* U.S. Treasury Sec says China tariffs to remain
* German yields fall after recent run-up
* Another big day for euro zone bond supply
* Euro zone periphery govt bond yields http://tmsnrt.rs/2ii2Bqr
LONDON, Jan 15 (Reuters) - Euro zone bond yields fell from two-week highs on Wednesday after the U.S. Treasury Secretary said tariffs would remain in place following the signing of an initial U.S.-China trade deal, injecting some caution into markets.
Analysts said that after the recent run higher for yields, the pause reflected position squaring as well as caution about whether the trade deal would lead to a further reduction in tensions between the two countries.
Wednesday will be another big day for euro zone bond issuance, with Germany, Italy and Belgium all coming to the market. Recent bond sales have seen huge demand from investors, with Spain boasting the largest ever order book for a euro zone bond sale on Tuesday.
The 10-year German bond yield fell 3 basis points in early trade on Wednesday to -0.199%, still not too far off the more than six-month highs of -0.157% touched at the start of January.
"There seems to be some second thoughts about the phase one trade deal," said Christoph Rieger, an analyst with Commerzbank, referring to the initial U.S.-China agreement.
Rieger said it may be a case of "buy the rumour sell the fact" given the rally in markets ahead of the deal's signing, but solid risk appetite meant that over the next few weeks German yields should hold above -0.2% and move higher.
Yields were also down across the region. The French 10-year yield weakened 3 basis points to 0.051%, while Belgian and Dutch yields were lower by a similar amount.
Full-year 2019 German economic growth numbers will be published at 0900 GMT, with a forecast of 0.6% growth. Unicredit analysts said that would mark the lowest growth rate since 2013.
"The major growth driver was probably domestic demand, and especially private consumer expenditure. In contrast, net exports are likely to have weighed on headline growth. The forecast risks are tilted to the downside," they wrote.
Euro zone industrial production data is due out at 1000 GMT.
Italy will sell a new 3-year benchmark, while Belgium has mandated banks for a new 10-year benchmark. Germany is tapping a 30-year bund for 1.5 billion euros.
"The supply has really been taken down by strides across all sectors (of investors). Most of the order books are very well oversubscribed," Commerzbank's Rieger said.
Italian bond yields were mildly lower in early trade, with the 10-year at 1.38% and the 30-year at 2.46% . (Reporting by Tommy Reggiori Wilkes; Editing by Kirsten Donovan)