LONDON, May 4 (Reuters) - Long-term borrowing costs in Germany, the euro zone’s biggest economy and its benchmark bond issuer, fell to 2-1/2 week lows on Friday after weaker-than-expected U.S. jobs data.
European bond yields followed U.S. Treasury yields lower after the closely-watched data was released, with Germany’s 10-year Bund yield dipping to as low as 0.52 percent .
Non-farm payrolls increased by 164,000 jobs last month, less than analysts had forecast.
The data also showed wages barely rising last month, which could ease concerns that inflation pressures were rapidly building and may keep the Federal Reserve on a gradual path of monetary policy tightening.
European shares hit a fresh session low but remained in positive territory with the STOXX 600 up 0.1 percent. Rate-sensitive banks deepened losses to trade down 1.2 percent. (Reporting by Dhara Ranasinghe and Danilo Masoni Editing by Tommy Wilkes)