Euro Zone Bond Yields Rise as France Prepares for Bond Sale

Euro zone bond yields edged higher after a sharp fall, ahead of a French government bond sale. Yields were influenced by economic data from the U.S. and election concerns in France. Germany and Italy also saw changes in their respective bond yields, reflecting investor sentiment and central bank rate expectations.

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, 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 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 .

Italy's 10-year yield was higher by 2.9 basis points​ at 4.012%. Germany's two-year bond yield, which is more sensitive to European Central Bank rate expectations, was little changed at 2.914%. ($1 = 0.9269 euros)

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