European long-term government bonds edged slightly higher, supported by a retreat in oil prices.

German government bonds pared their gains after lackluster demand at a 5-year note auction.

The yield on 30-year German government bonds fell 3 basis points to 3.81%, while 2-year and 5-year yields were roughly flat at 3.15% and 3.27% respectively; the larger decline in long-term yields pushed the German government bond yield curve into a bullish flattening.

UK government bonds showed little change, with the 10-year yield flat at 5.44%, while the 2-year yield rose 1 basis point to 4.92%.

Market: The 10-year German government bond yield fell 1 basis point to 3.47%; German 10-year government bond futures rose 8 ticks to 121.04; the 10-year Italian government bond yield fell 3 basis points to 4.54%; the spread between Italian and German 10-year government bonds narrowed 2 basis points to 107 basis points; the 10-year French government bond yield fell 5 basis points to 4.85%; the 10-year UK government bond yield was roughly flat at 5.44%.