June 26 Reuters Euro zone government bond yields rose on Wednesday as investors awaited inflation data from the United States and some members of the bloc due on Friday, and the first round of a French legislative election over the weekend.

The French debt risk premium remained within striking distance of its sevenyear high, hit almost two weeks ago on fears of a budgetary crisis at the heart of Europe.

A new French government led by Marine Le Pen39;s farright National Rally RN would end the decadeslong practice of running high budget deficits and stick to the European Union39;s fiscal rules, the party39;s financial pointman told Reuters.

The German 10year bond yield , the benchmark for the euro area, rose 3.7 basis points bps to 2.449.

France, Italy and Spain will release inflation data on Friday, while the German and euro area figures are due next week. Investors are also looking to Friday39;s release of the U.S. personal consumption expenditures PCE price index the Federal Reserve39;s preferred gauge of inflation.

Money markets priced in cumulative 68 bps of European Central Bank monetary easing this year , implying an additional 25 bps rate cut and a 70 chance of a third move in 2024.

Data continues to suggest that price growth will settle at the ECB39;s 2 target, Finnish ECB policymaker Olli Rehn said on Wednesday.

However, market concerns about inflation increased after data from Canada showed an unexpected turn creating some jitters among U.S. debt…