Selloff in euro zone bonds pauses but oil prices keep up pressure

LONDON, Aug 19 (Reuters) - The selloff in euro zone government bonds, which pushed yields to their highest in more than a decade, paused on Wednesday as the all-important U.S. Treasury market stabilised, although a rise in oil prices meant the relief was limited.

Germany's 10-year yield DE10YT=RR, the benchmark for the euro zone which hit a 15-year high on Tuesday as investors fretted about rising energy prices and government borrowing, fell 1 basis point (bp) to 3.247%.

The country's 30-year yield DE30YT=RR was down 1 bp to 3.762% after also rising to its highest since 2011 the previous day. Yields move inversely to prices.

Investors and analysts said a small rally in U.S. Treasuries, the dominant global bond market which influences the rest of the world, was helping sentiment.

U.S. 10-year Treasury yields US10YT=RR finished Tuesday 2 bps lower after rising to their highest since early 2025, in the wake of some weaker-than-expected house construction and industrial production data. They were down a further 2 bps on Wednesday.