Germany’s 10-year Bund yield stabilized around 3.3% following Tuesday’s sharp increase, as investors struggled to find direction amid a relatively light Eurozone economic data calendar. Brent crude prices also paused their recent decline following shipping attacks in the Strait of Hormuz, while markets continued to digest hotter-than-expected US inflation figures, which reinforced expectations of further Federal Reserve tightening in December and brought a potential 50-basis-point rate hike into focus. Meanwhile, persistent political and fiscal challenges in France, coupled with uncertainty surrounding the possibility of an early departure by ECB President Christine Lagarde, continued to weigh on sentiment across European markets. On the monetary policy front, ECB Chief Economist Philip Lane suggested that another rate increase in December could be warranted, adding to the growing number of policymakers signaling support for a third rate hike this year.