Oct 4 (Reuters) - European stocks slid for a third day in a row on Wednesday after a relentless rally in U.S. and European bond yields dented risky assets as investors came to terms with the view that monetary policy will remain restrictive for longer.
The pan-European STOXX 600 index fell 0.3% by 0717 GMT, touching a fresh six-month low.
The German DAX also dropped 0.5% to a six-month low as benchmark 10-year German bund yield breached 3% for the first time since 2011.
Automakers and banks were the biggest sectoral decliners in Europe, while utilities rebounded from recent sharp losses.
In the United States, yields for five-year maturities and beyond struck highs not seen in 16 years as markets braced for strong U.S. jobs to herald higher rates.
Among single stocks, Novartis rose 3.2% after the Swiss drugmaker said it has completed the spin-off of its generics and biosimilars business Sandoz.
Sandoz, meanwhile, tumbled 15.7% in its first day of trading on the Swiss stock exchange.
Tesco gained 2.4% after Britain's biggest supermarket upgraded its annual profit guidance as food inflation eased and shoppers snapped up both its low price offers and its premium "Finest" ranges. (Reporting by Sruthi Shankar in Bengaluru; Editing by Varun H K)
