European government bonds rallied on Friday as declining crude oil prices boosted market sentiment, though global yields remained elevated for the week due to ongoing tensions in the Middle East.
Brent crude oil fell 4.6% to just above $96 per barrel, snapping a five-day winning streak, though it remains on track for its longest weekly run of gains since March.
UK gilt yields dropped 7 basis points on Friday, but the benchmark still posted a fourth consecutive weekly increase, marking the longest such streak since May last year.
Earlier this week, the market broadly accepted the surprise appointment of John Healey as Chancellor of the Exchequer by Andy Burnham, which was announced late on Monday.
German Bund yields also moved towards their longest weekly winning streak since March.
Market snapshot:
Germany: 10-year Bund yield fell 3 basis points to 3.17%; Bund futures rose 27 ticks to 124.39.
Italy: 10-year BTP yield fell 5 basis points to 4%; the spread over German Bunds narrowed 2 basis points to 82 basis points.
France: 10-year OAT yield fell 4 basis points to 3.97%.
UK: 10-year gilt yield fell 7 basis points to 5.04%.
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