Stocks on both sides of the Atlantic gained, and so did the US dollar, after Federal Chair Janet Yellen's testimony to Congress cemented bets the central bank will raise interest rates at its December meeting.
The Federal Open Market Committee is set to start its next two-day policy meeting on December 13.
"At our meeting earlier this month, the committee judged that the case for an increase in the target range had continued to strengthen and that such an increase could well become appropriate relatively soon if incoming data provide some further evidence of continued progress toward the committee's objectives," Yellen said in prepared remarks for Congress's Joint Economic Committee.
US Treasuries fell, pushing yields on the 10-year note five basis points higher to 2.27 per cent, while yields on the 30-year bond climbed six basis points to 2.98 per cent.
"The fact that she didn't push back against market expectations for a December hike is perhaps the most significant takeaway," Jack Spitz, managing director for foreign exchange at National Bank of Canada in Toronto, told Bloomberg.