Euro zone bond yields slightly lower ahead of PMIs

LONDON, Sept 23 (Reuters) - Euro zone bond yields were slightly lower on Tuesday before the release of data on the region's business activity and heavy government bond issuance.

Germany's 10-year yield DE10YT=RR, the euro zone benchmark, was last down 1 basis point (bp) at 2.737%.

Germany's policy-sensitive two-year yield DE2YT=RR was down 0.5 bps at 2.013% after matching its highest since April on Monday at 2.03%.

Investors were awaiting September's purchasing managers' index surveys from Germany, France and the euro area bloc for indications that the economy is continuing its recovery despite political uncertainty in France and widespread tariffs.

"The PMIs take centre stage today," ING rate strategists said in a note.

"Consensus sees the eurozone aggregate PMIs remaining above 50, reflecting a gradual growth recovery and supporting a drift higher in euro rates."

Traders were also awaiting a busy day of sovereign bond supply, including Dutch 30-year paper that Commerzbank's head of rates, Christoph Rieger, called an "interesting test" for ultralong core duration.

Longer-dated bonds have been hit in recent months by investor worries over the sustainability of high government debt levels in countries including France, Britain, the U.S. and Japan.

Germany's 30-year yield DE30YT=RR was down 1 bp at 3.351%.