* The return of the 30-year bund briefly entered positive territory for the first time in more than a month, while US government debt yields rose to a maximum of 18 days.
* The assets considered as refuge have been caught in a liquidation in which gold fell to a minimum of one month and the yen depreciated to a floor of five weeks. But the actions failed to trace through weak data in China that affected the mood.
* Bond movements occur before the ECB meeting on Thursday. The entity is expected to announce a cut in its interest rates and indicate a greater stimulus in the form of bond purchases.
* However, the increasingly widespread opinion is that the ECB and other central banks with negative interest rates and below-zero returns on their long-term sovereign bonds are reaching the limits of stimulus policies.
* Later in the day German lawmakers start the 2020 budget debate. On Monday, Reuters reported that Berlin evaluates a "shadow budget" that would allow it to boost public investment beyond the limits set by its strict debt rules national.
* Europe's largest economy is close to the recession, but its strict national spending rules leave those responsible for hands tied to fiscal policy.
* In addition, the Federal Reserve is expected to reduce US interest rates at its meeting next week. Global policy makers are trying to protect the economy from risks, which include the planned exit of the United Kingdom from the European Union.
A CHINESE CLOUD
* Data that showed that producer prices in mainland China fell at their fastest pace in three years, put pressure on Asian stock exchanges. The CSI300 index of Chinese leading stocks fell 0.3%, while the Shanghai Composite lost 0.1%.
* In Japan, however, the Nikkei average hit a maximum of six weeks, with the momentum for exporters of a weak yen and the rebound in bond yields supporting the banking sector.
* In Europe, the pan-European benchmark STOXX 600 lost 0.4% in its second wheel followed by losses. Germany's DAX, sensitive to the movement of Chinese squares, was down 0.3%, while French CAC was down 0.6%.
GRAPH (in English): 30-year Bund yield rises above 0% tmsnrt.rs/2A8XP5y
EXCLUSIVE-Germany considers a “shadow budget” to avoid debt rules: sources
The deflation of China is accentuated in August at its highest level in 3 years
Karin Strohecker's report in London, additional and graphic report by Sujata Rao in London, additional report from Stanley White in Tokyo; Edited in Spanish by Janisse Huambachano