German government bonds experienced a slight bullish flattening, outperforming U.S. Treasuries, despite better-than-expected U.S. January employment data. U.S. Treasuries saw a bearish flattening as traders reduced their bets on Federal Reserve interest rate cuts.

French long-term government bonds outperformed their eurozone peers after the country's 30-year bond issuance via banks attracted a record subscription of over €135 billion.

The mid to long end of the UK gilt yield curve showed a bullish flattening, outperforming comparable bonds, as the likelihood of Prime Minister Starmer stepping down decreased. On the Polymarket platform, the probability of his departure this month fell to 4%, a significant drop from Monday's peak of 40%.

Market Data: German 10-year bond yield fell 1 basis point to 2.79%; German government bond futures rose 4 ticks to 128.68; Italian 10-year bond yield fell 1 basis point to 3.40%; French 10-year bond yield fell 2 basis points to 3.38%; UK 10-year gilt yield fell 3 basis points to 4.48%.