LONDON Aug 14 German 10-year bond yields fell
to a fresh record low on Thursday after data showed the euro
zone's largest economy contracted more sharply than expected in
the second quarter.
The German economy shrank by 0.2 percent between April and
June, its first contraction in more than a year as foreign trade
and investment weighed on growth. It had been forecast to
stagnate, according to a Reuters poll..
The French economy flatlined in the same quarter,
undershooting forecasts for growth of 0.1 percent.
German 10-year yields, the benchmark for euro
zone borrowing costs, were 1 basis point down at 1.022 percent,
an all-time low. French 10-year yields were 1.5 bps lower at
1.42 percent, not far from a record low of 1.399
percent hit last month.
(Reporting by Emelia Sithole-Matarise; Editing by Jamie