Germany’s 10-year Bund yield fell further below 3.45% after reaching a 17-year high, as the sharp selloff in European government bonds paused. Investors balanced demand for safe-haven assets against expectations that the ECB (European Central Bank) will continue raising rates through 2027. French yields stayed near a more than two-decade high amid public-finance concerns, while political uncertainty before the 2027 elections in France and Italy added to fiscal pressure. Eurozone inflation accelerated to 3.8% last month, its highest since September 2023 and well above the ECB’s 2% target, largely because of higher fuel prices. Isabel Schnabel said the coming months would be important for evaluating the energy shock and deciding how high rates must rise. Markets price one additional 25-basis-point increase by December, with a small chance of a second, and expect the deposit rate to reach about 3.4% by late 2027.