The gap between two- and 10-year German yields hit its widest since January at 92 bps, a steepening curve that signals investors are reassessing their views for future inflation.

French 10-year yieldswere up as much as 10 bps at 0.62pc, while Spain's rose 7 bps to hit 1.34 percent , levels last seen in June, just after Britain voted to leave the European Union.

Italy's rose to a one-year high at 1.80pc as investors turned their thoughts to the next big political event in the euro zone, a Dec. 4 constitutional referendum on which Prime Minister Matteo Renzi has staked his future.

The gap between yields on similarly-rated Italian and Spanish bonds -- seen as a bellwether of political risk -- was near its highest level since the 2012 debt crisis at 49 bps.

Earlier, U.S. 30-year yields gained nearly 25 basis points in their largest daily jump since August 2011, while 10-year yields climbed 21 bps to their highest level since January, and their biggest increase in more than three years.

A key market measure of long-term U.S. inflation - the five-year, five-year forward - rose to 2.38pc, its highest since July 2015. The European equivalent rose to a level last seen in late May at 1.4890pc.

"When we think through the possible implications of some of Trump's proposals which have to do with increasing tariffs, the most immediate implication is increasing prices - which is inflation," Michael Hasenstab, CIO of Templeton Global Macro, said in an emailed statement.

The rise in yields also came after a poorly received U.S. 10-year auction on Wednesday, which has the lowest bid-to-cover since March 2009. Analysts said bond markets were also showing nerves over how an auction of 30-year U.S. bonds on Thursday would fare.