Euro zone government bond yields fell on Monday after oil prices retreated on expectations that diplomatic efforts could ease tensions in the Middle East, improving investor sentiment and reducing concerns over inflation, according to Reuters.
The move followed comments from U.S. President Donald Trump indicating that talks with Iran were expected to begin later on Monday, raising hopes of a potential agreement that could help reopen the Strait of Hormuz, a key global energy shipping route. However, Iran's foreign ministry spokesperson said no negotiations were taking place with the United States, although discussions with Oman were continuing.
