A rally in global bonds lose energy after European Central Bank President Mario Draghi cautioned about pulling the trigger too quickly on policy easing, even though he all but pledged to loosen monetary settings further as the growth outlook deteriorates.
The 10-year German bond yield initially hit a record low of minus 0.463 percent but ended the day up slightly at minus 0.407 percent.
While European bond yields are likely to stay under pressure until the next ECB meeting on Sept 12, Brexit could become a central issue.
“If there are signs of easing tensions, we could see temporary rise in European bond yields,” Nomura’s Kishida said.
The U.S. 10-year Treasuries yield also rose 3 basis points to 2.079 percent on Thursday and last traded at 2.107 percent.