Germany’s 10-year Bund yield climbed back above 3.6%, its highest level since June 2009, marking a seventh consecutive weekly rise as elevated energy prices fuel concerns over renewed inflationary pressure and hawkish central-bank signals lift rate expectations. Money markets are now pricing in roughly 100 basis points of ECB rate hikes by late 2027. Investors in the US and UK have likewise increased bets on further tightening following hawkish comments from policymakers and data pointing to resilient growth. Meanwhile, concerns over debt affordability in heavily indebted economies, particularly France and Italy, added to pressure on European bonds ahead of elections next year. On the data front, German consumer sentiment deteriorated more sharply than expected heading into October, with higher energy prices weighing on households’ income expectations.