The gap between French and German government bond yields briefly narrowed after French Finance Minister Roland Lescure said France is considering issuing more short-term debt.

A spokesperson for the French Finance Ministry later stated that the debt issuance strategy has not been adjusted.

German government bonds held steady, with safe-haven buying pushing the yield curve steeper, and maturities across the curve showing mixed moves.

Earlier, French and Italian government bonds significantly underperformed, as markets worried the European Central Bank might not step in to support French bonds amid their weakness, while eurozone equities fell sharply.

UK government bonds also pared declines, with the yield curve remaining steeper.

Market levels: the 10-year German government bond yield held steady at 3.48%; German government bond futures fell 12 ticks to 120.78; the 10-year Italian government bond yield rose 10 basis points to 4.62%; the 10-year French government bond yield rose 12 basis points to 4.87%; the 10-year UK government bond yield rose 7 basis points to 5.44%.