U.S. government debt prices fell on Thursday after the European Central Bank held interest rates steady.
The central bank also extended its quantitative easing program until December 2017, but will reduce purchases to 60 billion euros per month from 80 billion euros.
"You can say that the bank is tapering in a more dovish way," Naeem Aslam, chief market analyst at Think Markets, said in a note. In our view, the upcoming elections in some of the largest economies of the Eurozone will keep the ECB accommodative."
In a news conference, ECB President Mario Draghi said "uncertainty prevails everywhere," but added the risk of deflation has largely disappeared.
The ECB was widely expected to announce it will continue with its massive trillion-euro bond-buying program at its meeting on Thursday, however some analysts were surprised at the details of the announcement.