German government bond yields rose to their highest level since 2011, while UK gilt yields surged to 5% for the first time since 2008. Driven by concerns that persistent conflict in the Middle East will further fuel inflation worries, traders increased their bets on more aggressive interest rate hikes from the European Central Bank and the Bank of England.

Italian government bonds underperformed other eurozone debt. Investors exited carry trades and wagered that the Italian government would increase spending to support households and businesses coping with rising energy costs.

Swap contracts now price in 43 basis points of ECB rate hikes by June and 80 basis points by year-end, up from Thursday's expectations of 34 basis points and 70 basis points, respectively.

Money markets anticipate 90 basis points of rate increases from the Bank of England this year, higher than the 75 basis points priced on Thursday and the 25 basis points expected last week.

Market Snapshot: The yield on the 10-year German bund increased by 9 basis points to 3.05%. German bund futures fell 88 ticks to 125.09. The yield on the 10-year Italian government bond rose by 18 basis points to 3.96%. The yield spread between Italian and German 10-year bonds widened by 10 basis points to 91 basis points. The yield on the 10-year French government bond climbed by 11 basis points to 3.76%. The yield on the 10-year UK gilt increased by 15 basis points to 5.00%.