German yields rise as GDP data confirms euro zone recovery bets
LONDON Aug 14 (Reuters) - German government bond yields hit their highest levels in seven weeks on Wednesday as growth data out of Germany and France confirmed expectations that the euro zone is recovering from recession.
The German economy grew by 0.7 percent in the second quarter of 2013, its largest expansion in more than a year, and France posted economic growth of 0.5 percent in the same period.
The numbers from the euro zone's biggest and second largest economies overshot forecasts. They are followed by overall euro zone figures at 0900 GMT.
German Bund futures fell 16 ticks to 140.70, having seen their biggest daily drop since March in the previous session. Ten-year yields were up 1.5 basis points at 1.83 percent.
"To an extent it was already priced in. We already had in the last couple of days more positive data pointing to a GDP surprise so that's being confirmed now," Elwin de Groot, senior market economist at Rabobank said.
Germany sells up to 4 billion euros of 10-year debt this trading session.
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