Europe Stocks Plummet as Bond Yields Reach Multi-Year Highs

European stocks took a hit on Thursday as government bond yields reached multi-year highs due to concerns over inflation and fiscal pressures.

The pan-European STOXX 600 index dropped by 1.3 percent, closing at its lowest level in more than three months.

Germans' benchmark DAX fell by 1.03 percent to 24,939.35 points, while France's CAC 40 lost 1.62 percent and Britain's FTSE 100 dropped by 1.68 percent to a three-month low.

The rise in European yields was triggered by a broader global bond selloff, with the benchmark U.S. 10-year Treasury yield climbing to 5.34 percent, its highest level since 2002.