* US to delay China tariffs on some products
* EZ, U.S. bond yields rise
* But German ZEW index tumbles
* Euro zone periphery govt bond yields tmsnrt.rs/2ii2Bqr (Updates with reaction to US trade news, adds comment)
By Virginia Furness and Dhara Ranasinghe
LONDON, Aug 13 (Reuters) - Euro zone government bond yields fell on Tuesday, with Germany’s 10-year benchmark reaching new lows, as concerns ranging from Brexit to turmoil in Hong Kong and uncertainty in Italy drove investors into safe-haven assets.
A survey from the ZEW institute showing the mood among German investors slid far more than expected in August only added to the bleak economic outlook, supporting bond markets.
News that the United States would remove some products from a list of tariffs on Chinese goods raised hopes of an easing in world trade tensions but only briefly dented the European bond rally.
“If there is a bit more optimism on the trade side that is going to support the growth story,” said Chris Scicluna, head of economic research at Daiwa Capital Markets.
“But fundamentally, we still have a net ratcheting up of the trade tensions compared with where we were at start of the summer and look at today’s ZEW survey - the data is still weak.”
In late trade, Germany’s 10-year bond yield was down 2 basis points at -0.61%, close to record lows. It rose briefly on the news that the United States would remove some products from a list of tariffs on Chinese goods.
U.S. bond yields were 2-8 basis points higher , while in the euro zone most yields held lower in a sign of entrenched pessimism about the growth outlook in the bloc.
Germany’s ZEW said its monthly survey showed economic sentiment among investors fell to -44.1 from -24.5 in July. Economists polled by Reuters had expected a drop to -28.5.
A separate gauge measuring investors’ assessment of current economic conditions fell to -13.5 from -1.1 in the previous month. Analysts had predicted a reading of -7.0.
“The ZEW index hasn’t been the most important, but this time everyone is very nervous and looking at all kinds of data,” said Daniel Lenz, rates strategist at DZ Bank.
German and French 30-year bond yields were down 4-6 bps, near record lows.
There are now nine sovereigns with 10-year bonds that trade at market prices implying a negative yield to maturity. The nominal stock of government debt with negative yields is about $15 trillion, Fitch said in a note on Monday.
Italian yields were down as much as 12 bps across the curve, falling for the second straight day.
Italy’s bond market has recovered some ground after a drubbing on Friday after the League party said it would push for a no-confidence vote to bring down the government it formed with the 5-Star Movement last year.
It hopes to trigger fresh elections and return to power.
Italy’s 10-year bond yield was last down 12 bps at 1.62% .
Reporting by Virginia Furness and Dhara Ranasinghe; editing by Larry King and Jon Boyle