European markets mixed as UK borrowing costs rise; Mercedes-Benz up 3%

European markets were mixed on Friday, as investors monitored corporate earnings and ongoing turbulence in the U.K.’s debt markets.

The pan-European Stoxx 600 index was little changed at 10:55 a.m. London time, with sectors and major bourses in mixed territory. London’s FTSE 100 shed more than 0.2% during morning deals.

Traders in the region are monitoring developments in the U.K. market, as yields on some gilts — British government bonds — hit their highest levels in decades this week.

After yields on 30-year gilts soared to their highest rates since the late 1990s in recent days, the yield on 10-year gilts hit its highest since the 2008 financial crisis on Thursday. Britain’s 10-year gilt yields gained three basis points to trade at 4.844% by 10:57 a.m. in London.

Meanwhile, the British pound has slumped to its lowest against the U.S. dollar in more than a year, trading at $1.2294 at 10:57 a.m. London time.

Concerns about the shape of the U.K. economy are mounting, with investors and businesses taking note of new fiscal policies that will see taxes and business costs rise, as well as weak economic data prints out of Britain and sticky inflation.

Overnight in Asia, stocks were mostly lower as investors monitored Japanese data prints and reports that the People’s Bank of China would suspend treasury bond purchases.

On Wall Street, stock futures slid on Friday, as investors braced for the release of December nonfarm payrolls data, with economists polled by Reuters anticipating a slowdown in job openings from the previous month.

— CNBC’s Lim Hui Jie and Sean Conlon contributed to this European markets story.