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Euro zone periphery govt bond yields tmsnrt.rs/2ii2Bqr (Adds U.S. data, updates prices) MILAN, Jan 8 (Reuters) - Euro zone government bond yields were down on Friday as expectations of European Central Bank support and worries about the economic recovery in Europe outweighed the impact of rising yields in U.S. Treasuries. U.S. bond borrowing costs could be headed still higher after reaching 1.0% this week on expectations that a Democrat-controlled Congress will have the clout to pass more fiscal stimulus, bolstering economic activity and debt issuance. A recent rise in yields and inflation expectations has boosted the prospects of the U.S. Federal Reserve’s new monetary policy, and they will be buoyed further if a Democrat-led Congress rolls out more spending.

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