The European STOXX 600 index fell 0.3 percent by 0717 GMT, reaching its lowest level in six months.
The German DAX index also fell 0.5 percent to its lowest level in six months after the benchmark German bond yield for 10 years exceeded the three percent threshold for the first time since 2011.
Shares of automakers and banks declined the most in Europe, while the utilities sector recovered from the sharp losses it suffered recently.
In the United States, bond yields for five years or more reached high levels not seen in 16 years, while markets are preparing for strong US jobs data, which portends a further increase in interest rates.
Among individual stocks, Novartis rose 3 percent.
Tesco shares gained 2.4 percent after Britain’s largest supermarket chain raised its annual profit forecasts as food price inflation declined.
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