German bunds — another safe haven — fell, while the dollar index, which tracks the greenback against a basket of other currencies, briefly declined to below 100.
This came after Asian stocks rallied, despite further weak Chinese factory data. Both the Chinese official and the Caixin/Markit purchasing managers' indexes (PMIs) showed that manufacturing activity decreased once again in November.
The Chinese Shanghai Composite index closed 0.4 percent higher after the news, while the Japanese Nikkei closed up 1.4 percent, topping 20,000 for the first time since August. Japanese 10-year sovereign notes traded narrowly higher.
Overnight, the International Monetary Fund officially stated that the yuan would enter its Special Drawing Rights (SDR) basket in October 1, 2016, making it a reserve currency alongside the U.S. dollar, euro, pound sterling and yen. The yuan will make up 10.92 percent of the basket.
In the euro zone, manufacturing PMI for November was confirmed at 52.8. However, the U.K.'s manufacturing PMI came in weaker than expected, at 52.7, showing declining growth in the sector.
U.K. Gilts traded lower after the news.