LONDON, Aug 6 (Reuters) - Germany's 10-year bond yield

continued to rise from its seven-month low reached the day

before as firmer U.S. data helped ease worries about an imminent

recession and Japanese equity markets made a roaring comeback.

Germany's 10-year yield was last up 3 basis

points (bps) at 2.212%, having touched 2.074% on Monday, its

lowest since Jan. 4. Bond yields move inversely to prices.

The recovery in yields gained steam after data on Monday

showed that the U.S. services sector rebounded from a four-year

low in July, with a measure of services employment rising for

the first time since January.

That helped ease worries of a recession after Friday's weak

U.S. labour market report sparked growth worries and had markets

betting on more aggressive central bank easing this year.

Germany's two-year yield, which is more sensitive

to changes in central bank easing expectations, was last up 4.5

bps at 2.382%. It hit its lowest level since March 2023 on

Monday at 2.151%.

Italy's 10-year yield rose 1 bp to 3.684%,

pushing the spread between Italian and Germany 10-year yields

to 146 bps. On Monday it touched its widest level

in more than five week at 153.9 bps.