June 7 (Reuters) - Euro zone government bonds extended their rally on Friday after a weak U.S. jobs report re-ignited bets on Federal Reserve rate cuts, pushing French 10-year yields to record lows for the first time.
Bonds yields across Europe, from Cyprus to Ireland were already plumbing record lows earlier in the day, but the data showing a sharp slowdown in U.S. jobs growth last month suggested loss of economic momentum was spreading to the labour market and lit another fire under global bond markets.
With U.S. Treasury bond prices rallying hard, euro zone bonds followed suit. French 10-year yields touched a low of 0.065%, surpassing the previous low hit in 2016 and down five basis points on the day.
Italian yields were down 20 bps to a new one-year low of 2.28% and its spread over Germany narrowed to the tightest in a month. German 10-year yields hit a new record low at minus 0.259% (Reporting by Sujata Rao; Editing by Dhara Ranasinghe)