European shares are closing mostly higher on Friday, but the gains were not enough to erase losses for most major indices this week. The broader STOXX 600 is also on pace for a weekly decline as elevated bond yields and oil prices continue to weigh on sentiment.

European closing levels:

• German DAX, +0.59% at 26,136.57
• France's CAC, +0.37% at 8,484.44
• UK's FTSE 100, +0.64% at 10,816.57
• Spain's Ibex, +0.76% at 19,961.50
• Italy's FTSE MIB, unchanged at 52,668.03

For the trading week, the UK FTSE 100 was the only major index to finish higher:

• German DAX, -1.15%
• France's CAC, -1.76%
• UK's FTSE 100, +0.62%
• Spain's Ibex, -0.97%
• Italy's FTSE MIB, -1.71%

European benchmark 10-year yields were marginally higher on the day:

• Germany 10-year: 3.261%, +0.6 basis points
• France 10-year: 4.133%, +1.6 basis points
• UK 10-year: 5.069%, +0.2 basis points
• Spain 10-year: 3.717%, +1.3 basis points
• Italy 10-year: 4.084%, +1.8 basis points

For the week, benchmark 10-year yields moved higher across the board:

• Germany: +4.9 basis points
• France: +8.1 basis points
• UK: +2.2 basis points
• Spain: +6.0 basis points
• Italy: +9.1 basis points

The increase in yields was especially notable in France and Italy, with European bond markets remaining under pressure from inflation concerns, heavy sovereign debt issuance and shifting expectations toward a more hawkish ECB. At Friday's close, France's 10-year yield (4.133%) sat above Italy's (4.084%) — a reversal of the long-standing pattern in which Italian debt has traded at a premium to its French equivalent.

For equity markets, the level of benchmark yields matters well beyond the bond market itself: higher rates raise companies' borrowing costs and sharpen the competition from risk-free returns, which is one reason yield moves of this size are tracked so closely alongside share prices. With inflation expectations and ECB communication cited among this week's main drivers, upcoming eurozone inflation data and further central bank commentary are the next scheduled reference points for conditions in European debt.

In currency trading, the USD has given back some of its earlier losses as London and European traders headed for the exits. The AUD and NZD remained firmly higher, supported by strength in assets such as gold. In contrast, the CHF weakened after SNB's Tschudin said that the CHF weakness is because of other countries' higher inflation expectations and that Swiss inflation is low because of low inflation expectations. That sent USDCHF higher.

Currency moves versus the USD:

• AUD: +0.83% — strongest performer
• NZD: +0.61%
• CAD: +0.18%
• GBP: +0.10%
• EUR: +0.03% — little changed
• JPY: -0.07% — the only major currency weaker against the dollar
• CHF: +0.10%

U.S. stocks are trading higher across the board, rebounding from Thursday's sharp declines.

• Dow: +410.04 points, or +0.78%, at 53,174.31
• S&P 500: +40.86 points, or +0.53%, at 7,682.01
• Nasdaq Composite: +140.22 points, or +0.54%, at 26,207.38
• Russell 2000: +22.89 points, or +0.76%, at 3,015.33
• Nasdaq 100: +119.52 points, or +0.41%, at 29,332.68

The gains are relatively broad-based, with the Dow and Russell 2000 leading on a percentage basis, while the Nasdaq 100 is lagging but still solidly higher. Despite Friday's rebound, the major indices remain on pace for losses for the week.

U.S. Treasury yields are moving sharply higher across the curve, with the largest increase at the front end — the part of the curve most sensitive to near-term policy expectations:

• 2-year: 4.232%, +4.7 bps
• 5-year: 4.421%, +3.4 bps
• 10-year: 4.734%, +3.6 bps
• 20-year: 5.260%, +3.4 bps
• 30-year: 5.273%, +3.6 bps

The move reflects a renewed selloff in Treasuries, with yields reversing some of Wednesday's decline after the Treasury announced it would increase buybacks of longer-dated debt. Those buyback operations, part of the Treasury's regular toolkit for supporting liquidity in older, less-traded issues, had helped drive Wednesday's drop in yields, part of which Friday's selloff is now unwinding. Even with that intervention, concerns about U.S. debt, inflation and heavy borrowing needs continue to push yields higher.

The 10-year yield is back above 4.70%, with the high at 4.748%, while the 30-year remains above 5.25% and is moving closer to the weekly high at 5.337% — the highest level since 2007 — keeping longer-term borrowing costs elevated.

As noted:

• Gold is up $106 to $4,623, or 2.33%
• Silver is up $1.76 to $69.80, or 2.58%
• Crude oil is trading around unchanged at $86.90