LONDON, March 1 (Reuters) - The spread of 10-year French government bond yields over Bunds narrowed on Thursday with markets buoyed by a jump in excess liquidity in the banking system.
Banks took another half a trillion euros of three-year funds from the European Central Bank the previous day, boosting sentiment and driving down yields in many euro zone bond markets including France and Italy.
The spread narrowed 10 basis points on the day to 107 basis points , also helped by a successful 8 billion euro auction
German Bund futures extended losses after the sale to stand 20 ticks lower on the day at 139.69 . (Reporting by Kirsten Donovan)