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* Low rise in bond yields in Germany
* The market is pausing after the biggest single jump since mid-January
* Focus on the ECB minutes of the March meeting
* Bond yields on the periphery of the euro zone tmsnrt.rs/2ii2Bqr (Updates with changes in yields in Italy)
By Dhara Ranasinghe
LONDON, April 4 (Reuters) – Germany's 10-year yield fell to just under zero per cent on Thursday as new signs of weakness in Europe's biggest economy offset the optimism sparked by the American-Chinese trade negotiations and a more moderate Brexit.
After posting the largest monthly declines in almost three years in March, German Bund yields rose in early April, as global economic data improved and discussions between the two largest economies in the world rose. trade seemed to progress. Thursday saw a note of caution come back.
The data indicates that German industrial orders fell unexpectedly in February, recording their largest decline in more than two years.
At the same time, the leading German economic institutes have lowered their growth forecasts for 2019, from 1.9% to 0.8% in 2019. However, they warned that growth could be much lower. if Britain left the European Union without any agreement.
The yield on the 10-year German Bund was minus 0.008%. It jumped five basis points on Wednesday, its biggest rise in a day since mid-January.
"We argued that the negative 10-year Bund yields could only be rationalized for extreme anxiety," said Benjamin Schroeder, ING Chief Strategist at ING. "Part of this anguish has been lifted over the last few days by many positive headlines leaving the 10-year Bund yield around zero again."
Most bond yields in the euro area fell that day.
In addition to the optimism spurred by trade negotiations between the United States and China, the hope of a more moderate outflow of Britain from the European Union has weakened the United States. attractiveness of safe haven badets.
The Lower House of the British Parliament on Wednesday approved a law that would force Prime Minister Theresa May to request a postponement of Brexit to prevent a departure on April 12 without reaching an agreement.
"The markets are more responsive to the more positive news about Brexit, and if we see a conclusion here, it would be a drop for bond yields," said Pooja Kumra, European rate strategist at TD Securities in London. "But we are on mixed ground because our data is poor and we are focusing on Brexit."
Italian bond yields jumped following reports of a reduction in Italy's growth forecasts. Reuters announced Wednesday that Rome would likely reduce its estimate of growth for 2019 this month to 0.3% or 0.4%.
Attention has shifted to the subsequent publication of the minutes of the March meeting of the European Central Bank – in particular to obtain details of the ECB's plans to issue new, cheap loans to banks and its debate. on hierarchical interest rates. (Report by Dhara Ranasinghe, edited by Larry King)
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