European government bond yields remained near historic peaks on Friday after the European Central Bank raised its deposit facility rate by 25 basis points to 2.50%, intensifying pressure across fixed-income markets. Germany's 10-year Bund yield rose to 3.505%, close to its highest level since 2011, while France's 30-year yield reached its highest level since 2003. The sell-off marked a fifth consecutive week of rising yields as traders assessed energy-driven inflation, structural fiscal pressures and the prospect of restrictive borrowing costs extending into late 2026. Brent crude climbed above $109 a barrel amid Middle East supply restrictions and Houthi activity in the Red Sea, while money markets priced a high probability of a third ECB rate increase before year-end. The policy-sensitive German two-year yield rose to 3.181% after suffering its sharpest one-day sell-off in two months. European markets were also awaiting August U.S. Consumer Price Index data after a hotter-than-expected Producer Price Index reading showed wholesale inflation accelerating to 5.4%.