Eurozone government bond yields declined as oil prices retreated, while U.S. Treasury yields stabilized near recent multiyear highs in European midday trade Friday. Front-month Brent crude for November fell 1% to $105.60 a barrel amid prospects of a possible U.S.-Iran agreement on gradually reopening the Strait of Hormuz. The 10-year Treasury yield was flat at 5.161%, below Thursday's 5.225% peak, its highest level since mid-2007, while the 30-year yield held at 5.463%, below Thursday's 5.502% peak, the highest since 2004. Markets priced a 69% probability of another 25-basis-point Federal Reserve rate increase in October, down from 73% in Asian trade, after last week's hike brought the fed funds target range to 3.75%-4.00%. The 10-year German Bund yield fell 0.9 basis points to 3.597%. The DXY dollar index fell 0.3% to 100.961 after reaching an eight-week high of 101.398 Thursday, but remained elevated as expectations for further Fed tightening supported the dollar and shorter-dated Treasuries. Analysts cited stronger economic data, Middle East tensions, a possible diesel export ban, a weak five-year Treasury auction, fiscal deficits and persistent inflation pressures as risks to further increases in U.S. and eurozone yields. The market's reassessment reflects uncertainty over where normal interest rates should settle, while the recent rise in yields is no longer attributed solely to fiscal-deficit concerns.