UK 10-year gilt yields fell into the upper 4.9% range on August 11, reversing part of an earlier move above 5%, while German 10-year Bund yields traded in the mid-3.1% range as volatile oil prices briefly eased inflation concerns. Earlier optimism around possible progress on Strait of Hormuz transit talks and a potential U.S.-Iran arrangement helped crude retreat, but later skepticism about any deal and attacks on two ships in the Middle East renewed supply fears and pushed Brent to $89.63 a barrel and WTI to $83.91 in early Wednesday trading. Investors also remained cautious ahead of July U.S. CPI data and watched central-bank policy, OPEC and the International Energy Agency for further signals.