Borrowing costs across the euro zone touched on multi-week lows Monday, as a legislative defeat for U.S. President Donald Trump on healthcare reforms raised questions about his ability to push through tax cuts and fiscal spending to boost the economy.

As investors reassessed the outlook for growth and inflation, analysts said bets that the European Central Bank could look to tighten monetary policy sooner rather than later were also being scaled back.

Bond yields in Germany and France fell to their lowest levels in around three weeks, while U.S. 10-year Treasury yields tumbled to one-month lows.

Since November's U.S. election, expectations that large fiscal stimulus under a Trump administration would help push up economic growth and inflation have boosted risk assets and dented safe-haven bonds in the U.S. and Europe.

But the healthcare bill was pulled from the floor of the House of Representatives on Friday because it failed to draw enough support from within Trump's Republican Party - throwing so-called "Trump reflation" bets into reverse.

Stock markets tumbled and the dollar slid to its lowest since November against a basket of currencies DXY.

"The disappointment about the pro-growth policies of Trump are causing investors to reassess the future," said Martin van Vliet, senior rates strategist at ING.

http://www.reuters.com/article/us-eurozone-bonds-idUSKBN16Y1XQ?il=0