As investor concerns over geopolitical risks eased, U.S. Treasury yields fluctuated higher during the European trading session. Even so, Monday’s U.S. ISM Manufacturing PMI data, which came in below expectations, served as a reminder that the economic outlook remains fragile and that the labor market is showing signs of cooling.Frank Walbaum of Naga noted in a report: “Continued weak data could reinforce market expectations that the Federal Reserve will adopt a more dovish stance in 2026; the market has already priced in two rate cuts by year-end.” This week, Friday’s nonfarm payrolls data is drawing particular attention. According to Tradeweb data, the 10-year U.S. Treasury yield rose 2.2 basis points to 4.184%.