U.S. Treasury yields eased as lower oil prices tempered inflation concerns and limited the dollar's upside. The 10-year benchmark fell to 4.34%, while the two-year note slipped to 4.58%. Oil prices retreated after recent gains, with Brent crude dropping to $78.50 per barrel.

Markets digested mixed economic data, including stronger-than-expected retail sales but softer housing starts. The dollar index held near 103.5, showing limited movement as investors weighed Federal Reserve policy outlook. Analysts noted that softer inflation pressures could support continued monetary easing, though persistent wage growth remained a focal point.

Trading volumes were light ahead of the holiday weekend, with attention turning to upcoming jobs reports for further direction.