* Moves driven by positioning, real yields - analysts * Germany sees weak demand for 5-year bond auction (Add details, updates prices) July 7 (Reuters) - Germany’s 30-year bond yield fell to its lowest level since March on Wednesday, and many other benchmark government bond yields touched new multi-month lows, as fixed income assets extended their rally. Analysts said that while technical factors like weaker liquidity and short-covering had driven the move, Chinese regulation headlines, the spread of the Delta COVID-19 variant and weak U.S. services data had boosted the case to hold safe-haven government bonds. The fall in yields on Wednesday sent borrowing costs to new lows on both sides of the Atlantic, though moves were smaller than in the previous session as the region’s stock prices rose, while oil declined after volatile trading.