Risks spanning credit markets, elevated commodity prices and French political turmoil boosted demand for safer government bonds, snapping a prolonged decline fueled by persistent inflation concerns.
Sovereign debt rose in Japan, Australia and New Zealand as investors sought haven assets, while Treasuries held the bulk of their gains from Thursday’s rally.
A Bloomberg gauge of the dollar headed for a third weekly gain, the longest winning run since January 2025. European bonds, though, remained under pressure as concerns around France’s fiscal and political situation pushed euro-area risk premiums higher.
French bond futures held near an all-time low, while their German equivalents climbed for a fourth day, and longer-maturity UK gilt yields briefly climbed above 6%.
Pressure has been building elsewhere as well. Asian shares were set for their worst week since July and European stocks their worst since April. Global oil benchmark Brent held above $102 a barrel after a two-day gain.
Iron ore futures fell for a 10th day in Singapore — potentially the longest losing run in more than a decade — and copper was poised for its biggest weekly loss since May.
