Euro zone bond yields, which had been rising in line with US Treasury yields on hopes for a strong economic recovery later this year and increased inflation, dropped 1-3 basis points.
"The global picture is that the manufacturing sector is in rude health and is the sector that is leading the recovery, so perhaps there's a bit of a reaction to that," said ING rates strategist Antoine Bouvet.
Europe's spending stimulus has been less ambitious, but markets have signalled expectations that inflation will rise in the coming months, with borrowing prices for EU governments increasing.
Major eurozone stock markets meanwhile retreated at the start, with Frankfurt's DAX 30 index down 0.3 percent to 13,263.83 points and the Paris CAC 40 losing 0.4 percent to 5,589.26.