The dollar weakened and U.S. Treasury yields moved lower after OPEC and the International Energy Agency signaled a softer oil demand outlook and July U.S. inflation met expectations, easing pressure for a near-term Federal Reserve rate increase. The DXY dollar index fell 0.1% to 99.895, while the 10-year Treasury yield declined 2 basis points to 4.671%, according to LSEG. The IEA said oil demand would fall by 1.6 million barrels per day this year, and OPEC cut its 2026 demand growth forecast to 580,000 barrels per day from 780,000. In Europe, 10-year Bund yields rose 0.5 basis points to 3.162% as hopes for a U.S.-Iran peace deal faded, a shift Deutsche Bank Research strategists said was raising concerns about longer supply chain disruptions and inflation risk. Gains in eurozone yields were limited after U.S. inflation eased to 3.4% in July, in line with expectations, prompting markets to scale back bets on a September Fed rate rise.