Germany’s 10-year Bund yield remained near 3.25%, close to its highest level since March 2011, as investors weighed rising inflation risks, increased public spending and higher energy costs. Oil traded near three-week highs and European natural gas reached its highest level since January 2023 amid Middle East-related supply disruptions. Eurozone inflation accelerated to 2.9% in July, above the European Central Bank’s 2% target, increasing expectations that policymakers may keep monetary policy tighter for longer. German bonds also tracked a global fixed-income selloff as US Treasury yields rose after the initial support from the Treasury’s expanded buyback programme faded.