Meanwhile, crude oil rose for a fourth day to reach a one-month high amid speculation OPEC+ will maintain production cuts at a meeting this Sunday and renewed geopolitical tensions.
US yields climbed on Wednesday after consumer confidence data came in stronger than expected on Tuesday, Minneapolis Fed President Neel Kashkari said further rate hikes were still a possibility, and two Treasury auctions were poorly received by investors.
The benchmark 10-year US Treasury yield rose as high as 4.578 per cent, a level not seen since May 3. Yields move inversely to prices.
"These expectations of Fed rate cuts have been pared back," said Aneeka Gupta, director of macroeconomic research at WisdomTree.
"Overnight we had (Minneapolis Fed president) Neel Kashkari mention that we still can't take the possibility of a rate hike in 2024 off the table."
The sharp improvement in a US consumer confidence measure for May has kept the market guessing about the strength of the economy and sticky inflationary pressures, which in turn cloud the outlook for the Fed's policy path.
European equities fell for a second session, with the continent-wide STOXX 600 index down 0.8 per cent.
Britain's FTSE 100 was down 0.41 per cent and Germany's DAX was 0.88 per cent lower.
US stock futures were also in the red, with S&P 500 contracts 0.59 per cent lower and Nasdaq contracts off by 0.65 per cent.
The rise in US yields spread around the world, with Germany's 10-year bond yield climbing six basis points to 2.648 per cent, the highest in a month.
Data out on Wednesday showed German inflation rose to 2.8 per cent year-on-year in May, when adjusted to compare across the European Union, from 2.4 per cent in April.
Japanese 10-year yields hit the highest since December 2011 at 1.081 per cent on expectations that the Bank of Japan could soon raise interest rates again.
The dollar rose to a four-week peak of 157.4 yen on Wednesday, boosted by higher US bond yields, before slipping back slightly. It was last flat against the euro at $1.0853.
In energy markets, Brent crude oil futures for July delivery rose 0.7 per cent to $US84.81 a barrel, the highest since May 1, while US crude futures climbed 0.75 per cent to $US80.42.
Oil prices gained more than $US1 a barrel on Tuesday on the expectation that OPEC+ will maintain crude supply curbs at its June 2 meeting, while the start of US summer driving season and Israel's assault on Rafah, next to the Egyptian border, has added to geopolitical tensions.
Mainland Chinese blue chip stocks edged 0.12 per cent higher after the IMF upgraded its economic growth forecasts for the country.
