French government bonds fell, underperforming other eurozone sovereign debt as domestic demand proved insufficient. The yield spread between French and German 10-year bonds widened to its highest level since October.

The spread between French and German 10-year yields increased by 3 basis points to 84 basis points, while the Italian-German 10-year spread widened by 2 basis points to 78 basis points.

French 30-year bond yields rose to their highest level since 2008. Meanwhile, German 30-year yields jumped 9 basis points to 3.73%, a 15-year peak.

Traders briefly raised expectations for European Central Bank rate hikes by 5 basis points, now pricing in 40 basis points of tightening by year-end.

UK gilts also declined sharply, led by long-dated bonds. The UK 30-year yield rose 9 basis points to 5.88%, a three-week high. Swap markets indicate traders now expect the Bank of England to raise rates by 28 basis points, up from 26 basis points on Thursday.

Market snapshot:

Germany's 10-year bond yield rose 7 basis points to 3.20%.

Italy's 10-year bond yield rose 9 basis points to 3.98%.

France's 10-year bond yield rose 10 basis points to 4.05%.

The UK's 10-year gilt yield rose 8 basis points to 5.04%.