LONDON, Sept 23 (Reuters) - Euro zone bond yields were

slightly lower on Tuesday before the release of data on the

region's business activity and heavy government bond issuance.

Germany's 10-year yield, the euro zone

benchmark, was last down 1 basis point (bp) at 2.737%.

Germany's policy-sensitive two-year yield was

down 0.5 bps at 2.013% after matching its highest since April on

Monday at 2.03%.

Investors were awaiting September's purchasing managers'

index surveys from Germany, France and the euro area bloc for

indications that the economy is continuing its recovery despite

political uncertainty in France and widespread tariffs.

"The PMIs take centre stage today," ING rate strategists

said in a note.

"Consensus sees the eurozone aggregate PMIs remaining above

50, reflecting a gradual growth recovery and supporting a drift

higher in euro rates."

Traders were also awaiting a busy day of sovereign bond

supply, including Dutch 30-year paper that Commerzbank's head of

rates, Christoph Rieger, called an "interesting test" for

ultralong core duration.

Longer-dated bonds have been hit in recent months by

investor worries over the sustainability of high government debt

levels in countries including France, Britain, the U.S. and

Japan.

Germany's 30-year yield was down 1 bp at 3.351%.

(Reporting by Samuel Indyk

Editing by David Goodman

)