Global sovereign bond yields retreated across Asian and European markets as investors assessed the Federal Reserve’s 25-basis-point rate increase, falling oil prices and possible diplomatic progress involving Iran. The U.S. 10-year Treasury yield fell for the first time in nine sessions from above 5% to around 4.96%, while Germany’s 10-year yield eased toward 3.5% after reaching 3.5723%, its highest since June 2009. France’s 10-year yield reached 4.5531% and its spread over German Bunds widened to 98.15 basis points, the highest since July 2012. The Fed’s increase lifted its target range to 3.75%-4%; markets priced further U.S. and European tightening despite the Fed’s projection of one additional increase this year. Brent crude traded near $105 a barrel after Saudi Arabia outlined plans to restore roughly half the capacity of its damaged East-West pipeline within days, while reports of possible progress toward ending the seven-month Iran war helped reduce longer-term bond risk premia. The reprieve remained tentative ahead of the Bank of England and Bank of Japan decisions, with markets pricing an 80% chance of a 25-basis-point Bank of Japan increase to 1.25%.