LONDON - French government bonds held steady on Thursday, as the market regained a sense of calm after the previous day's sell-off drove the risk premium over German bonds to its highest since the 2012 debt crisis.

The U.S. Thanksgiving holiday made for subdued trading in the broader markets, leaving yields virtually unchanged across the board.

European Central Bank President Christine Lagarde told the Financial Times a global trade war would be "in nobody's interest".

European markets in particular have been rattled by U.S. President-elect Donald Trump's pledges to slap tariffs on those trading partners he considers to have an unfair advantage over the United States, starting with China, Mexico and Canada. Investors fear the European Union could be next.

In France, Prime Minister Michel Barnier is facing public anger over his proposed budget and opposition from Marine Le Pen's far-right National Rally (RN), which props up his administration, might bring down the government.

A survey on Thursday showed more than 50% of French people want the government to fall.

* French 10-year OAT yields were last flat on the day at 3.024%, leaving the yield premium over German Bunds at 85.7 basis points, some way below Wednesday's high of 90 bps.

* French bonds now trade almost at parity with Greek 10-year debt, as yields on the latter have fallen to the point where they are at a premium of just 2.5 bps over France. French yields have never traded above those of Greece.

* German Bund yields were mostly flat on the day at 2.65% , having touched 2.135% on Wednesday, their lowest since early October.

* Two-year German Schatz yields were around 1 bp lower at 2.033%, marginally above this week's two-year low of 1.971%.

* Economic data on Thursday includes preliminary inflation reports from Germany and Spain, as well as euro zone business and consumer confidence.

(Reporting by Amanda Cooper; Editing by Kirsten Donovan)