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Southern euro zone bond yields dip as investors greet Biden win

* Italian, Spanish yields down 2-3 bps in early trading

* German bund yields pinned near recent levels

* Euro zone periphery govt bond yields

LONDON, Nov 9 (Reuters) - Southern euro zone bond yields resumed their decline on Monday, with the Italian yield heading back towards a record low, as investors greeted Joe Biden’s presumed victory in the U.S. presidential election.

U.S. Treasury yields have risen in recent sessions as investors anticipated increased fiscal spending under a Biden administration, while euro zone yields have been little changed -- bond-buying by the European Central Bank has kept yields trading within tight ranges.

The benchmark German 10-year yield dropped 1 basis point to -0.636%.

Still, yields on riskier peripheral sovereign debt fell on Monday, a sign investors were willing to take on more risk and were relieved about an election outcome in the United States after last week’s uncertainty. Stock markets surged.

In early Monday trading, the Italian 10-year yield fell 3 basis points to 0.589%, while shorter-dated yields were down a similar amount . Italian bonds were also supported by Moody’s sticking with its credit rating last week and affirming the outlook as “stable”.

Spanish yields dropped 2 to 3 basis points, as did Portuguese.

With little significant data on Monday, analysts expect a quiet session for euro zone bonds, with German bunds remaining close to current levels.

“A light data agenda today is likely to leave Bunds driven by swings in risk appetite and the fallout from the U.S. elections,” UniCredit analysts said in a note.

“However, given we expect only moderate pressure on U.S. yields, it is hard to see 10Y Bunds to moving back above the -0.60% threshold in a stable way anytime soon. Ongoing ECB purchases will continue to provide support.” (Reporting by Tommy Wilkes,)