year yields were trading at around 4.16 percent. Comparable 10-year euro zone government bonds yielded 3.26 percent, off from Tuesday's four-week high of 3.32 percent. U.S. crude extended its decline, with the new frontmonth September contract down 1.2 percent. The August contract expired on Wednesday at a three-week low of $56.72 following weekly U.S. oil reserves data which showed a smaller-than-expected fall in crude supplies and a rise in distillates. Gold hit its highest level in a week as the dollar weakened against the euro.
