The size and importance of the U.S. economy and its markets mean European yields broadly follow moves in Treasuries.
"Markets have little time to catch their breath as the data calendar is packed on both sides of the Atlantic, and the Bank of England will announce its interest rate decision," said Erik Liem, rates strategist at Commerzbank.
Euro zone GDP data is set to be released, and the Bank of England, which is expected to hold rates, is due to announce its decision at 1100 GMT (1300 CEST).
U.S. personal consumption expenditures inflation data is due later in the day.
Euro zone bond yields rise after U.S. sell-off
LONDON, July 30 (Reuters) - Euro zone bond yields rose on Thursday as traders reacted to a jump in U.S. market rates after Wednesday's Federal Reserve decision and a rise in oil prices, driven by a widening of the U.S.-Iran conflict.
Longer-dated bond yields – which typically reflect concerns about inflation and growth – rose the most after the 30-year U.S. Treasury yield US30YT=RR climbed to a 19-year high overnight following the Fed's decision to hold interest rates.
Analysts said the rise in long bond yields showed traders are sceptical about the Fed's commitment to reducing price pressures, as new chair Kevin Warsh again refused to offer any clues about future moves.
Germany's 30-year bond yield DE30YT=RR rose 3 basis points (bps) on Thursday to 3.664%, although the moves in Europe were more muted than those in the U.S., reflecting expectations that the European Central Bank will raise rates again this year to tame inflation.
Oil prices and U.S. Treasury moves add pressure
A rise in oil prices was also adding to the upward pressure on bond yields as traders factored in the possibility of stronger inflation. Brent crude LCOc1 was up 2% at $92.90 a barrel.
Germany's 10-year bond yield DE10YT=RR - the benchmark for the euro zone - climbed 1 bp to 3.17%. Yields move inversely to prices.
Energy prices climbed as the U.S. and Iran continued to trade attacks and the conflict spread in scope, with a drone hitting a U.S.-owned gas storage tanker at Egypt's Mediterranean port of Damietta according to British maritime security firm Ambrey.
Shorter-dated European bond yields slipped, however, causing yield curves to steepen. That reflected a fall in two-year U.S. Treasury yields US2YT=RR overnight as traders reduced their bets on immediate Fed rate hikes.
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