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LONDON, Feb 14 (Reuters) - France and Ireland saw their 10-year borrowing costs converge briefly on Tuesday for the first time since October 2007, with upcoming presidential elections pushing up France's bond yields to 14-month highs in recent weeks.
Reuters data showed the yield on France's 10-year bond edging to a high of 1.035 percent while the Irish equivalent fell 2.4 basis points (bps) to the same level.
France's credit rating of Aa2/AA/AA from Moody's, S&P Global and Fitch is several notches above Ireland's rating of A3/A+/A.
"It's quite an astonishing trend and it shows how much politics is driving the market," DZ Bank strategist Daniel Lenz said.
French yields have risen sharply in recent weeks from a low of 0.66 percent in early December on the possibility of a presidential victory for anti-euro far-right leader Marine Le Pen when two rounds of voting begin in April.
Most euro-zone bond yields have risen in recent weeks on increased growth and inflation data but France has sold off more aggressively than higher-rated peers.
Since the start of December, the gap between France's 10-year bond yield and the German equivalent has risen 14 bps to 69 bps. (Reporting by Abhinav Ramnarayan; Editing by Louise Ireland)