U.S. Treasury, European Bond Yields Fall as Oil Prices Drop

A facts-only brief, written by a local AI model from this article in The Wall Street Journal, November 2, 2026. It may contain mistakes, and it is not the article: the full story is at wsj.com.

U.S. Treasury and European government bond yields declined on Monday as Brent crude prices dropped 4.5% to $108.37 per barrel, a move attributed to diplomatic efforts to resolve the U.S.-Iran conflict. The 10-year Treasury yield fell one basis point to 4.918%, while the U.K. 10-year gilt yield reached its lowest level in nearly six weeks at 5.219%. Exness strategist Dat Tong noted that reduced expectations for Federal Reserve rate hikes and doubts regarding artificial intelligence investment returns contributed to the subdued yields and pressure on the U.S. dollar.

Background

• Fitch Ratings affirmed France’s A+ credit rating on Friday but lowered its outlook to negative, citing weaker growth and higher borrowing costs.
• Investors are monitoring Tuesday’s U.S. midterm election results and Wednesday’s Treasury quarterly refunding announcement, which may include changes to long-term debt issuance.
• The Bank of England is expected to raise interest rates on Thursday, with money markets pricing in three additional quarter-point increases over the next year.
• Friday’s nonfarm payrolls report is expected to show a rise in new jobs to 55,000 in October, up from 29,000 in September.

Read the full article at wsj.com

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