March 5 (Reuters) - Euro zone government bond yields

jumped on Wednesday after the German conservatives and the

Social Democrats (SPD) agreed to seek a loosening of the

country's so-called debt brake.

Germany aims to allow higher defence spending and proposed

the creation of a 500 billion euro infrastructure fund, their

leaders said on Tuesday.

Germany's 2-year yield rose 8 basis points to

2.09%, while 10-year yields rose 12 bps to 2.602%

on the Tradeweb platform.