Weak PMI data pushes eurozone yields to new lows

London

BOND yields of several eurozone countries touched new record lows on Tuesday after weak private sector growth data indicated a slump in oil prices offered little support to the region's sluggish economy.

Markit's flash composite Purchasing Managers' Index (PMI) for Germany fell to 51.4 in December after a final reading of 51.7 in November. That was above the 50 line denoting growth, but it was the lowest reading in 18 months and far below levels seen earlier this year. The data reinforced bets that the European Central Bank (ECB) could soon start buying sovereign bonds to pump money into the eurozone economy, cooling any expectations that the potential positive growth effect of cheaper oil could prevent such a move.