Spreads between peripheral euro zone government bond yields and benchmark German debt widened as investors got spooked at the prospect of fresh supply from the region's higher-yielding issuers next week.

Wider spreads were driven by rises in Portuguese yields as that country's IGCP debt agency said it will issue between 750 million euros and 1.25 billion euros in two bond maturities at an auction on Jan. 12.

Debt auctions from Spain and Italy are also scheduled for next week.

US equities mostly dipped as some big US retailers missed estimates for December sales after a post-Christmas blizzard that slowed a two-month shopping spree, driving down consumer shares. Energy shares declined along with oil prices.

The Dow Jones Industrial Average was down 45.14 points, or 0.39 percent, at 11,677.75. The Standard & Poor's 500 Index fell 4.60 points, or 0.36 percent, at 1,271.96. The Nasdaq Composite Index was up 2.20 points, or 0.08 percent, at 2,704.40.

European stocks however, closed at their highest in nearly 28 months on expectations for renewed US economic growth and ahead of Friday's widely watched US non-farm payrolls data.

The FTSEurofirst 300 index of top European shares finished 0.4 percent higher at 1,147.23 after touching 1,154.10, the highest since September 2008.

World stocks as measured by MSCI dipped 0.2 percent, mainly on gains in Japan and Europe. Emerging markets stocks were down 0.5 percent.

The euro tumbled to a five-week low against the dollar, and the greenback's rise reverberated throughout the commodities market.

The benchmark 10-year US Treasury note was up 17/32, with the yield at 3.3971 percent. The 2-year US Treasury note was up 2/32, with the yield at 0.6648 percent. The 30-year US Treasury bond was up 18/32, with the yield at 4.5052 percent.

Spot gold prices rose 0.24 percent to $1,373.10 an ounce.

The crisis in poorer euro zone states such as Greece and Ireland has triggered investor flight out of the so-called euro zone periphery, which also includes Portugal, Spain and Italy.