Germanyâ€™s government bonds underperformed their higher-yielding euro-area peers as the nation sold 4 billion euros ($4.4 billion) of 10-year debt.
Italyâ€™s sovereign bonds advanced, along with most major euro-region securities, while German 10-year bunds were little changed.
The yield on Europeâ€™s benchmark securities has climbed about seven basis points since the day before the European Central Bankâ€™s policy decision on March 10, when President Mario Draghi announced an expansion of stimulus and signaled that there will be no further interest rate cuts.
â€œBund yields have notched up since the ECB meeting as rate-cut expectations were priced out,â€ Benjamin Schroeder, a Frankfurt-based interest-rate strategist at Commerzbank AG, which is ranked first among dealers by Germanyâ€™s debt agency, wrote in an e-mailed note. â€œWe consider the risk of a further back-up in bund yields remote.â€
Germanyâ€™s 10-year bund yielded 0.31 percent as of 10:39 a.m. London time. The price of the 0.5 percent security due in February 2026 was 101.90 percent of face value.
Italyâ€™s 10-year bond yield fell three basis points, or 0.03 percentage point, to 1.34 percent, while that on similar-maturity Spanish debt slid two basis points to 1.49 percent.
Germany allotted the 10-year bunds at an average yield of 0.3 percent.
That compares with 0.26 percent at a previous auction on Feb. 17, which was the lowest since April 2015.