Oil Price Slump Sends Euro Zone Bond Yields Tumbling

Oil prices plummeted on Monday after US President Donald Trump hinted at diplomatic progress in the Middle East, sparking hopes of easing tensions and boosting investor sentiment.

The drop in oil prices sent euro zone bond yields tumbling, with Germany's benchmark 10-year government bond yield falling 5 basis points to 3.158%.

The decline in bond yields was a reflection of easing concerns over energy-driven inflation, which had pushed yields close to their highest levels in 15 years on Friday.

Brent crude dropped about 5% to $83.30 a barrel after Trump's remarks, while the two-year bond yield also declined by 5 basis points to 2.765%, reflecting softer inflation expectations linked to lower energy prices.