European Bond Yields Ease as Oil Prices Fall Below $100

Global bond markets have seen some relief on Friday as yields edged lower across the euro zone. This comes after multi-year highs were reached in the previous session, triggered by investors' concerns over inflation and interest rates following a pullback in oil prices.

Brent crude futures dropped 2.1% to $98.59 a barrel, despite remaining on track for a weekly gain of around 12%. The sharp increase in energy costs has reignited inflation concerns and prompted traders to bet on further monetary tightening by major central banks.

The European Central Bank kept interest rates unchanged on Thursday, but left open the possibility of another rate increase in September. Several ECB policymakers reiterated that inflation risks remain elevated and acknowledged the possibility of another rate hike.