Germany’s 10-year Bund yield edged down to around 3.5% as oil prices declined for a second consecutive session and investors assessed the Federal Reserve’s latest rate decision. Brent crude traded near $105 a barrel after Saudi Arabia said it plans to restore roughly half the capacity of its damaged East-West pipeline within days. The uncertain Middle East outlook is keeping energy prices elevated, complicating central banks’ efforts to curb inflation without excessively weakening economic activity. The Federal Reserve raised rates by 25 basis points, its first increase since July 2023, and signalled another hike later this year because of persistent inflation pressures. Markets are also pricing in at least one more European Central Bank (ECB) increase this year. The ECB raised rates for the second time this year last week, citing renewed inflation risks linked to higher energy prices.