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By Joice Alves

LONDON, Oct 7 (Reuters) - Euro zone bond yields rose on

Tuesday, a day after French Prime Minister Sébastien Lecornu

unexpectedly resigned, deepening a political crisis in Europe's

second-biggest economy.

French President Emmanuel Macron on Monday tasked his

outgoing prime minister, who quit earlier in the day, to hold

last-ditch talks with other political parties to try to chart a

path out of the crisis.

Lecornu tendered his government's resignation only hours

after announcing his cabinet line-up, making it the

shortest-lived administration in modern French history.

The German 10-year bond yield, the benchmark for

the euro zone bloc, rose 2.6 basis points to 2.74%.

The French 10-year yield was up 2.6 bps to

3.59%.

This left the yield gap between safe-haven Bunds and 10-year

French government bonds - a market gauge of the

risk premium investors demand to hold French debt - at 83 bps.

The spread on Monday hit 87.96 bps, its highest since January

13.

"The spreads on French government bonds widened on the news

of another fallen prime minister but remain below previous

peaks," said Benjamin Schroeder, senior rates strategist at ING.

"We see many paths to further widening as the political

landscape is shrouded by uncertainty."

Meanwhile, Japanese government bond yields retreated from

record highs after a closely watched sale of 30-year debt passed

smoothly, despite concerns that the country's likely next prime

minister will loosen fiscal restraints.

Following the surge in Japan's 30-year borrowing costs,

ultra-long bonds across Europe also came under pressure.

The 30-year German bond yield rose 3.8 bps to

3.33%. The French 30-year yield was up 3.1 bps at

4.43%. Italy's 30-year yield was up 3.8 bps at

4.51%.

On the data front, German industrial orders fell for a

fourth straight month in August, dragged lower mainly by a weak

car industry and a decline in overseas demand, the federal

statistics office said on Tuesday.