European ultra-long-dated government bonds advanced on Wednesday, buoyed by a significant rally in long-dated US Treasuries, which finally put an end to a three-day losing streak for German Bunds. The yield on the 10-year German Bund dipped 2 basis points to 3.24%, while the 30-year yield slipped 4 basis points to 3.73%; both maturities pulled back from their highest levels since 2011, which had been touched earlier in the session. The decline in the 30-year yield, coupled with a modest uptick in shorter-dated yields, contributed to a flattening of the yield curve.

US bond prices surged following the Treasury Department's announcement of measures to bolster long-dated debt. This came after the 30-year Treasury yield had skyrocketed to its loftiest point since 2007, triggering a broad selloff in sovereign bonds worldwide. Within Europe, UK gilts led the gains, with the 30-year yield falling 7 basis points to 5.76%, retreating from the two-month high set on Tuesday. France is slated to auction bonds on Thursday, including OATs maturing in 2029 and 2034, as well as inflation-linked securities due in 2043 and 2047.

Where the market stands now

German Bund yields are essentially flat at 3.26%, with Bund futures holding steady at 123.81. Italy's 10-year yield eased 2 basis points to 4.05%, while the spread over German Bunds narrowed by 2 basis points to 80 basis points. France's 10-year yield declined 1 basis point to 4.11%, and the UK's 10-year gilt yield dropped 4 basis points to 5.04%.