U.S. Treasury yields rose but stayed below Thursday's multiyear highs in Asian trade. The upward trend reflected expectations of further Federal Reserve interest-rate hikes as the robust U.S. economy and AI-driven growth appeared resistant to higher borrowing costs, spooking Treasury investors.

Elsewhere, German consumer confidence fell to its lowest since May on rising energy costs as Middle East tensions escalated. President Trump and Xi's Washington summit offered ceremony but few outcomes, with disagreements over trade, technology and Beijing's support for Iran. Trump also expressed concern about yen weakness to Prime Minister Sanae Takaichi.

Russian and Ukrainian attacks throttled Black Sea grain exports, pushing wheat futures near three-year highs. Senate Republicans defeated a push to end the Iran war, while European Union officials discussed the diesel-export debate with the Trump administration. Fed's Paulson predicted more rate increases, and weak Treasury auctions showed little demand despite government repurchases. Sonal Desai of Franklin Templeton Fixed Income said current bond yields did not threaten economic growth—for now.