UPDATE 2-Euro zone bond yields rise for a 2nd day as trade deal eyed

* Yields consolidate after big moves earlier in the week

* France, Spain to raise 7-9 bln euros in bonds

* Euro zone periphery govt bond yields http://tmsnrt.rs/2ii2Bqr (Adds details, updates prices)

By Tommy Wilkes

LONDON, Dec 5 (Reuters) - Euro zone government bond yields rose for a second consecutive day, tracking firmer U.S. Treasury yields as investors awaited the next signal from China-U.S. trade negotiations amid mixed messages on the state of talks.

Yields rose on Wednesday on renewed hopes of a deal between the two nations, but that followed sharp falls earlier this week.

The ups and downs of negotiations and some mixed signals from U.S. President Donald Trump have been the dominant market drivers in recent weeks. The overall positive take on the state of those talks, as well as signs that the euro zone economy's slowdown may be bottoming out, has helped yields rise from record lows hit during August and September.

Data on Thursday showed that the euro zone economy grew at a modest pace in the third quarter, while retail sales fell at their sharpest rate this year in October, but the bond market hardly reacted as the gross domestic product number was in line with a flash estimate released previously.

U.S. Treasury yields rose as new data showed a fall in weekly jobless claims and a decline in the U.S. trade deficit,

Rainer Guntermann, a rates strategist at Commerzbank, said it was "a struggle to find a clear direction".

"We are entering a quiet period before next week's ECB (European Central Bank) meeting," he said, the first for its new boss Christine Lagarde.

"In the broader picture, there is certainly some optimism priced in. But markets are still quite puzzled about the underlying economic trend," he said, adding that bond markets were still priced for a "slow growth, low inflation" world even if Washington and Beijing secured the first stage of a trade deal.

German 10-year bond yields rose slightly more than 2 basis points to -0.2930 percent. Other core government bond yields also moved between 1 and 2 bps.

French and Spanish yields rose 2 basis points, with the two countries expected to raise between 7 and 9 billion euros combined on Thursday.

French public transport ground to a halt as workers began a nationwide strike to oppose the government's pension reforms, but this had no immediate market impact.

Italian bonds rose, with the 10-year yield rising nearly 10 bps to 1.48%.

"The data calendar will remain uninspiring today. However, in line with the trend we have become accustomed to over the last few days, volatility can be expected to come more from politics than from data," Unicredit analysts said in a note. (Editing by Chizu Nomiyama and Gareth Jones)