The 10-year yield was last up 5 basis points at -0.347% , set for its biggest daily rise since April 12.

Other euro zone bond yields also rose on the day, with Italian bond yields 6-11 bps higher across the curve. ,

US nonfarm payrolls rose by 224,000 jobs last month, the most in five months, data showed. Economists polled by Reuters had forecast payrolls rising 160,000 jobs in June.

But despite the boost to euro zone bond yields, analysts do not think that the data is evidence of any major shift in economic outlook, nor will it derail expectations that the Fed will cut rates soon.

"It clearly had an impact but this number is not a game changer on the structural issues and the stance the Fed is likely to take," said Matt Cairns, rates strategist at Rabobank. "It is not likely to change the direction of the Fed's message or the action that is very much expected."

Cairns added that after the euphoria of the last few weeks, investors were profit taking.

"If you have been long these assets and they have outperformed, why not take a bit of profit at the lower levels," he said. "Bunds still have room to go lower from here."

Italian 10-year bonds were on track for their best week since September 2018, having rallied 33 basis points.

Italy on Wednesday dodged the threat of EU disciplinary action over its public finances after persuading the European Commission that new measures submitted would help bring its growing debt into line with EU fiscal rules.

Speculation that the ECB could deliver not only interest-rate cuts but possibly a fresh round of monetary stimulus were fuelled this week by ECB officials, pushing euro zone bond yields down this week.

Germany's 10-year bond yield fell below the European Central Bank's -0.40pc deposit rate for the first time on Thursday. The last time 10-year bond yields in the euro zone's biggest economy fell near ECB rates was during the global financial crisis.