Yields on global government bonds steadied while the dollar traded near three-month lows in early European trade.

U.S. Treasury yields held close to flat after earlier retracing sharp falls that initially followed the Treasury's surprise bond market intervention.

Analysts and investors warned that Treasury Secretary Scott Bessent's move to increase buybacks on longer-dated bonds won't address the structural causes of higher yields.

European bond yields slipped slightly following weaker-than-expected economic data, easing the outlook for sustained rate hikes on the continent.

U.S. stock futures rose in the European morning, on pace to gain back some of Thursday's sharp losses. Brent crude oil held above $93 a barrel in the absence of progress in U.S.-Iran peace efforts.

For the day ahead, investors watch for U.S. PMI data following Eurozone prints.

--Oil prices slipped but were still headed for a weekly gain of around 5% after President Trump vowed to launch sweeping measures aimed at further isolating Iran's economy. Prospects for an imminent resolution and reopening of Hormuz remain distant, keeping a significant geopolitical premium embedded in prices. "With the Middle East crisis showing few signs of easing, the risk of further disruption to regional energy flows continues to support crude and refined product prices," analysts at Saxo Bank said. In early European trading, Brent crude was down 0.3% to $93.50 a barrel, while WTI futures slipped 0.5% to $86.42 a barrel.

--In the U.S., futures for the Dow Jones Industrial Average rose 0.2% while the S&P 500 added 0.3%. Nasdaq futures gained 0.5%.

--Asian stock markets were mixed. Japan's Nikkei Stock Average fell 0.8% and China's Shanghai Composite Index was flat. South Korea's Kospi added 0.6% and Hong Kong's Hang Seng Index rose 0.5%.

--European indexes largely rose at market open. Banking was the leading sector while healthcare dragged, as the Europe-wide Stoxx 600 added 0.1%. Miners led London's FTSE 100, which edged 0.05% higher, with Fresnillo and Antofagasta gaining 3.4% and 3.3% on higher gold and silver prices. Germany's DAX and the French CAC 40 traded flat. Italy's FTSE MIB added 0.3%, led by AI-linked STMicroelectronics and Prysmian--up 1.3% and 1.1%, respectively. Banca Monte dei Paschi di Siena rose 0.5% after moving to buy two peers. Spain's IBEX 35 was 0.5% higher. The Dutch AEX added 0.2% as semiconductor stocks strengthened after weakening over the week so far, with ASML rising 1.2%.

--The dollar weakened against a basket of currencies amid uncertainty about whether the Federal Reserve will raise interest rates despite a solid U.S. economic backdrop. The currency held near a three-month low reached Thursday in the wake of the U.S. Treasury announcement that it would increase buybacks of long-dated debt. The economy points to a stronger dollar over the coming months, but surprises from U.S. policymakers may matter more in the near term, Capital Economics' Jonas Goltermann said in a note. "We are increasingly worried that the dollar will remain under pressure rather than, as we have long expected, appreciate over the coming months," the chief markets economist said. The DXY index fell 0.2% to 98.733, staying close to Thursday's low of 98.557.

--U.S. Treasury yields were slightly higher in Asian trade as investors remain cautious. "Concerns about large budget deficits and extensive borrowing from tech companies seem to be back in focus," SEB's Pia Fromlet said in a note. The 10-year U.S. Treasury yield rose 1 basis point to 4.707%, while the 30-year yield was up 1.8 basis points at 5.254%.

--The 10-year French government bond, or OAT, yield trimmed its rise after a weaker-than-expected flash estimate purchasing managers' index reading for August. The composite flash PMI came in at 48.8, below analysts' consensus expectation of 49.4 in The Wall Street Journal's poll. The 10-year OAT yield was last up 0.3 basis point on the day at 4.109% after the data, versus 4.115%, up 0.9 basis point beforehand, according to Tradeweb. The euro showed little reaction, last trading up 0.1% against a broadly weaker dollar at $1.1692.

--Bitcoin rose around 4% to a 12-week high of $75,681. The cryptocurrency was boosted by a combination of regulatory momentum, institutional spot demand, lower-yield expectations and forced short covering, Zaye Capital Markets' Naeem Aslam said.

--Gold prices rose above $4,600 a troy ounce and are headed for a weekly gain of 4%, buoyed by concerns over the U.S. government debt and borrowing costs. "Gold is on track for a third consecutive weekly gain," analysts at Saxo Bank said. "The ability of gold to rally alongside higher nominal yields highlights the growing importance of fiscal and debt concerns as a driver of hard-asset demand." In early European trading, New York futures were up 1.1% to $4,620.80 a troy ounce.