French bonds lead euro zone yields higher

LONDON, Oct 21 (Reuters) Euro zone bond yields rose on Wednesday, led by another increase in French borrowing costs, as investors took stock of the widespread protests across France that are putting pressure on ​a government that is struggling to shore up its finances. A rebound ‌in the oil price back above $110 a barrel, after a short-lived drop the previous day, added to the negative sentiment. In France, benchmark 10-year OAT yields have risen more than 16 basis points so far this week, by far the most among the bonds of the world s ‌largest ​economies, which have risen by an average of ⁠5.4 bps, according to LSEG ⁠data. French yields, which are about to hit 5% for the first time since mid-2002, were last up 3 bps on the day at 4.948%. The premium of French yields over benchmark 10-year Bunds has also been edging back ​towards early October s 15-year high of nearly 160 bps. This discrepancy in yields reflects the extra return investors demand for lending to France rather than Germ