Germany’s 10-year Bund yield ended the week around 3.5%, down from a peak of 3.57% on Tuesday, the highest level since June 2009, and posting its first weekly decline since early August. The retreat came as traders scaled back expectations for further ECB rate hikes, despite a more restrictive tone from the Federal Reserve that could reinforce global tightening expectations. Some analysts argued that markets had gone too far in pricing ECB hikes, noting that higher energy prices could weigh on growth and ultimately dampen inflationary pressures. Also, Brent crude fell for a third consecutive session as concerns over Saudi supply disruptions eased, offering some relief on the inflation front. Money markets now price the ECB deposit rate at just below 2.9% by December, implying roughly a 50% chance of a second hike this year. By November 2027, rates are priced at 3.39%, down from 3.55% on Monday.