U.S. Treasury and European government bond yields fell in midday European trading as oil prices reversed lower, but Treasury yields remained near multiyear highs. The 10-year Treasury yield fell 2 basis points to 5.220%, close to Monday’s 5.274% peak, the highest level since June 2007, while the 30-year yield declined 1.8 basis points to 5.543%, below Monday’s 5.583% peak, last seen in 2002. The 10-year German Bund yield dropped 4.5 basis points to 3.601%. Front-month Brent for November was down 1% at $104.25 a barrel after rising earlier in European trading. The U.S.-Iran stalemate over the terms for reopening the Strait of Hormuz, a key Middle East oil route, continued even as more tankers crossed the waterway. Market participants and strategists said elevated yields could attract investors as fixed income becomes more competitive with equities, though strong economic data, a resilient labor market, AI spending, easier fiscal policy and persistent energy inflation continue to support higher rates. Money markets price in 100 basis points of Federal Reserve rate increases over 12 months, according to LSEG. Investors are awaiting U.S. labor-market, inflation and Federal Reserve officials’ comments this week for clues on the interest-rate path.