Germany’s 10-year Bund yield rose to 3.47% on Tuesday after falling seven basis points in the previous session, while the euro weakened to $1.145, its lowest level since late July. Brent crude recovered after touching its lowest level since September 10 and remained on track to end a four-day decline, keeping markets focused on energy flows amid continuing Middle East tensions and possible diplomatic efforts at this week’s United Nations meetings. Eurozone bond yields have reached multi-year highs as investors assess the risk of energy-driven inflation, higher interest rates, elevated government debt and increased corporate borrowing to fund AI investment. The dollar remained supported by expectations of further Federal Reserve rate hikes. Political uncertainty is also weighing on markets: Germany’s governing CDU recorded its worst-ever result in Mecklenburg-Western Pomerania, winning no seats, while some members called for Chancellor Friedrich Merz to step down after 16 months in office. France’s public finances remain under scrutiny, with its budget deficit above 5% of GDP as the government seeks to reduce it before a divisive election next year.