Euro zone bond yields fall as oil prices drop on hopes for Iran talks

Germany's 10-year bond yield DE10YT=RR, the benchmark for the bloc, fell 6 basis points to 3.145%, after rising to nearly its highest level in 15 years on Friday. Yields move inversely to prices.

Germany's two-year bond yield DE2YT=RR, which is sensitive to European Central Bank rate expectations, fell 4.5 bps to 2.763% as expectations of lower inflationary pressures caused traders to nudge down their bets on further rate hikes.

Italy's 10-year bond yield IT10YT=RR, traditionally the benchmark for the so-called periphery euro zone economies, fell 9 bps to 3.941%.

Trump told reporters on Sunday that a negotiation would begin on Monday afternoon, but did not say who would be involved or where the talks would be.

Strategists sounded a note of caution on Monday.