UK gilt prices extended a bull-steepening move as Brent crude gave back gains after earlier touching $90 a barrel. According to Sina Finance, the 10-year UK gilt yield fell as much as 5 basis points to 4.94%, after earlier reaching 5.05%.

German bonds also rose, with the 10-year yield down 3 basis points to 3.15% after earlier hitting a higher level. Traders cut bets on rate increases, and markets now price in 26 basis points of cumulative Bank of England tightening by the end of December and 38 basis points of cumulative European Central Bank tightening.