Germany’s 10-year Bund yield edged lower, falling below 3.3%, as investors took a breather following a sharp rise in inflation concerns and interest rate expectations across the US and Europe earlier in the week. Stronger-than-expected US inflation data on Tuesday pushed Treasury yields higher and reinforced bets on further Federal Reserve rate hikes, with the sell-off spilling over into European bond markets before yields stabilized. Meanwhile, Brent crude traded around $93 a barrel, well below recent highs, while European gas prices also declined amid increased Gulf supplies and easing concerns over a renewed escalation in the conflict. On the monetary policy front, markets are pricing in an 80% chance of a 25-basis-point ECB rate hike in December, with two increases fully priced in by mid-2027. In the US, the latest inflation data and hawkish Fed commentary have reinforced expectations of a December rate hike, while raising the possibility of a larger 50-basis-point increase.