Germany’s 10-year Bund yield rose above 3.25%, reaching its highest level since March 2011, as persistent inflation concerns outweighed a recent decline in oil prices. Renewed price pressures in France and Spain in August strengthened expectations that the European Central Bank could raise rates at its September meeting. Markets now price the ECB deposit rate at 2.80% by March next year, compared with 2.25% currently, and around 2.90% by late 2027, implying about a 60% chance of a move to 3%. Recent ECB minutes said officials considered another increase likely necessary, while Reuters reported that policymakers were prepared to raise rates in September to contain the economic fallout from the Iran war, although they remained reluctant to signal further tightening beyond that. Investors also awaited Federal Reserve Chair Kevin Warsh’s speech at Jackson Hole for clues about the US interest-rate outlook.