European Bonds Win Respite as Oil Drops on Iran War Hopes

Bonds across Europe surged as oil prices and inflation expectations eased on hopes that the Iran war may end in the coming few weeks, potentially turning the page on a torrid period for global markets.

Yields on 10-year UK and German debt slid for a third day to a two-week low, with US Treasuries also posting gains. Still, the moves pared as Brent crude oil was unable to sustain a drop below $100 a barrel, and borrowing costs remain near multi-year highs.