An increase in debt purchases by central banks is unlikely to happen due to this BOJ decision.

Across Europe, Spain's 10-year yields rose to two-month highs. Bonds from both Portugal and Ireland fell, as German 10-year yields rose to three-month highs.

European Central Bank president Mario Draghi earlier announced on German public television that debt buying will only occur when involving target prices that are out of line with fundamentals.

"We are seeing a lot of volatility and the jury remains out on exactly what the BOJ will achieve," said Michael Leister, a strategist on interest rates at CommerzbankAG based in the United Kingdom. "Investors are realizing that very low funding rates aren't set in stone and that's feeding through into the euro rates market," he said.

"European bonds remain under pressure and the picture looks weak," summed Leister.