U.S. Treasury yields fall accelerates in European trade as oil prices stabilize. The dollar remains broadly stable as safe-haven demand due to Middle East conflict concerns is offset by reduced expectations for Federal Reserve tightening. The two-year Treasury yield falls 3.2 basis points to 4.122%, while the 10-year yield declines 4 basis points to 4.528%, according to Tradeweb. Brent crude trades at $85.77, and the DXY dollar index is flat at 100.797.

Eurozone government bond yields track U.S. Treasuries lower. The August 2036-dated Bund yield falls 1.8 basis points to 3.120%, nearing the May 19 peak of 3.200% that should prompt buyers per Danske Bank's Kirstine Kundby-Nielsen. U.K. gilt yields reverse Thursday's rise, with 10-year yields down 3.6 basis points to 4.938% as oil prices stabilize and inflation concerns ease.

In Asian trade, U.S. yields decline further: the two-year falls 2 bps to 4.136%, the 10-year down 2 bps to 4.548%, and the 30-year down 1.4 bps to 5.083%. Japanese government bonds face conflicting policy forces, per Societe Generale strategists. Markets balance Middle East hostilities against moderating inflation fears after weaker U.S. CPI data, with Konstantinos Chrysikos noting the dollar's stability from offsetting forces.