Euro zone bond yields rise ahead of French debt sale test
By Harry Robertson
LONDON, July 4 (Reuters) -Euro zone bond yields edged higher after falling sharply the previous day, ahead of a French government bond sale that will test investor demand before the final round of parliamentary elections on Sunday.
Germany's 10-year bond yield DE10YT=RR, the benchmark for the euro zone bloc, rose 1.3 basis points (bps) to 2.571%, after falling 5 bps on Wednesday after weak U.S. economic data.
France will raise up to 10.5 billion euros ($11.33 billion) from four sales of longer-dated bonds on Thursday.
France's 10-year bond yield FR10YT=RR was up 2.6 bps at 3.272% after falling 6 bps the previous day.
The closely watched gap between French and German borrowing costs - which spiked to its highest since 2012 at 85 bps as fears about a far-right election victory rose - was at 70 bps DE10FR10=RR.
Italy's 10-year yield IT10YT=RR was higher by 2.9 basis points at 4.012%.
Germany's two-year bond yield DE2YT=RR, which is more sensitive to European Central Bank rate expectations, was little changed at 2.914%.
($1 = 0.9269 euros)
Reporting by Harry Robertson; Editing by Stephen Coates
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