LONDON, Feb 18 (Reuters) - Longer-dated euro zone yields

rose to two-week highs on Tuesday, extending the increases of

the previous day when investors sold bonds on expectations that

European governments would ramp up issuance to fund bigger

defence spending.

German 10-year bond yield, the benchmark for the

euro zone bloc, rose 3 basis points (bps) to 2.51%, its highest

since Jan. 31.

The euro zone benchmark rose 6 bps on Monday following

remarks by European leaders that they would have to hike defence

spending in response to the U.S. being less willing to take the

lead on Europe's defence, likely requiring greater borrowing.

Eyes also remained on the Saudi capital, Riyadh, where U.S.

and Russian officials are due to meet to discuss ending the

Ukraine war. Europe may play a role in supporting Ukraine's

security after any peace deal, underscoring the need for more

military expenditure.

​ Italy's 10-year yield was last higher by 2

basis points​ at 3.57%. It touched 3.60% in early trade, also

its highest level of the year.

Shorter-dated yields, which are more sensitive to

expectations over central bank policy than long-term

developments, moved less. Germany's two-year yield

was about 1 bp higher at 2.15%.