Euro zone bond yields, euro drop as German manufacturing recession deepens

LONDON: Euro zone government bond yields and the euro fell on Wednesday after data showed Germany's manufacturing recession had deepened, with the performance of goods producers dropping to the lowest level in seven years.

German and French government bond yields fell to new two-week lows, with the benchmark 10-year German Bund yield down 2 basis points to a low of -0.38%. The common currency was down by 0.2% at $1.1127, plumbing the lowest since May 30, having shed 2.1% of its value this month.

The French and German stock indices  briefly hit their lows for the day after the data. At 0739 GMT, the euro zone benchmark was flat on the day.