Government bonds in Europe rose after US Federal Reserve Chairman Ben S. Bernanke subdued the rising concern that the reduction of the U.S. stimulus was forthcoming. Bernanke addressed the Senate Banking Committee that it was "way too early to make any judgment" about the tapering of asset purchases for September. Previously, he told the House Financial Services Committee that the Federal Reserve's quantitative easing is "by no means on a preset course."

"Bernanke clarifying his position on when and how QE will be tapered has certainly helped European bonds," said Thomas Rahman, strategist at RIA Capital Markets Ltd. in Edinburgh. "Actions from central banks continue to be supportive for the Bond markets. In the Euro Zone, the recent shocks appear to be relatively contained."

Bond yields went up and down in the past months as central banks all over the world gave mixed messages regarding the direction of monetary policies and as economies recover from the global financial crisis.