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UPDATE 1-Euro zone bond yields near record lows as German outlook dims

Virginia Furness

* Euro zone periphery govt bond yields (Updates pricing, adds charts, ZEW survey)

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 political turmoil in Italy drover investors into safe-haven assets.

A survey of business sentiment in Germany added to a dismal image of euro zone's largest economy, showing a deterioration in the outlook for the German economy.

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.

Ten-year German government bond yields were last at -0.613% in early trade, having hit a record low of 0.619% earlier in the session. Its 30-year notes outperformed and were down four basis points at -0.135%, near record lows,.

Economic woes and expectations of more monetary easing are pushing down bond yields globally. Japanese 10-year yields hit three-year 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 seven basis points across the curve, falling for the second straight trading day after a call on Friday from League leader Matteo Salvini to dissolve the government.

Salvini is pushing for a no-confidence vote this week to bring down the government his party formed with the 5-Star Movement last year. Opposition parties would prefer to wait until Aug. 19-20. The decision lies with the heads of political groups in the Senate.

Italy's 10-year yield fell to 1.68%.

(Reporting by Virginia Furness; editing by Larry King)