German bond yields, stocks, euro rise after better-than-expected PMIs

German bond yields, stocks, euro rise after better-than-expected PMIs

Aug 23 (Reuters) - Government bond yields and stocks in Germany as well as the euro rose on Tuesday after business activity data from the euro zone's lead economy showed business activity slowed less than expected in August.

While S&P Global's flash composite Purchasing Managers' Index, tracking both manufacturing and services activity, fell further, the 48.1 reading was slightly higher than analyst expectations, driven by manufacturing activity.

Germany's 10-year Bund yield rose to the highest since July 21 at 1.34% and was last up 3 basis points on the day DE10YT=RR . Two-year bond yield touched a new high at 0.941% DE2YT=RR , which was the highest since end-June.

Germany's DAX .GDAXI index, after a brief fall, quickly recovered and was last up 0.1%. It outperformed other major indices, with the STOXX 600 pan-European index of shares down around 0.22% .STOXX .

The battered euro meanwhile pared its losses after the data. It was last flat on the day at $0.99435 EUR=EBS , having hit a fresh 20-year low earlier on at $0.99005.


Reporting by Yoruk Bahceli, Lucy Raitano, Dhara Ranasinghe; Editing by Dhara Ranasinghe