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An one Euro (L) and one Greek Drachma coins are displayed on an European flag in this picture illustration taken in Istanbul June 14, 2012. Murad Sezer, Reuters
Euro zone bond yields fell in early trading on Tuesday as traders reacted to U.S. President Donald Trump's new 25% tariffs on imports from Mexico and Canada taking effect and duties on Chinese goods doubling.
Monday saw a sharp rise in longer-dated yields triggered by expectations of a rise in European defence spending.
Germany's 10-year bond yield, the euro zone's benchmark, fell 5 basis points (bps) to 2.437%.
Germany's 2-year bond yield fell 6 basis points (bps) to 2.01%.
The yield on the 30-year bond, which on Monday rose nearly 12 bps, was last down 2 bps at 2.781%.
(Reporting by Lucy Raitano; Editing by Amanda Cooper)
