UK government bonds fell, with longer-dated securities leading the decline; new political uncertainties added further pressure amid a global bond sell-off.

The yield on the UK 10-year government bond rose by 8 basis points to 4.84%, while the 30-year yield also climbed 8 basis points to 5.54%, marking their highest levels in a week.

European bond markets followed a similar pattern. Italy's 30-year bond yield increased by 8 basis points to 4.54%, and Germany's 30-year bond yield rose by 7 basis points to 3.54%.

Traders are grappling with the prospect of a potential leadership contest in the UK, coupled with a reported delay in talks between the US and Iran regarding an enduring peace agreement.

Interest rate swap markets indicate traders are pricing in 38 basis points of interest rate hikes from the European Central Bank this year, and 35 basis points from the Bank of England. For the US Federal Reserve, traders are fully pricing in a 25-basis-point rate increase by September.

Market Snapshot

The yield on Germany's 10-year government bond increased by 5 basis points to 2.98%.

German government bond futures fell by 69 ticks to 126.07%.

Italy's 10-year government bond yield rose by 6 basis points to 3.69%.

The yield spread between Italian and German 10-year bonds widened by 1 basis point to 71 basis points.

The yield on France's 10-year government bond increased by 6 basis points to 3.74%.

The yield on the UK 10-year government bond was up 8 basis points at 4.84%.