German 10-year Bund yields rose to 3.25% as oil prices paused their recent decline and uncertainty persisted over a possible agreement to reopen the Strait of Hormuz. Qatar's prime minister is due in Tehran on Thursday to revive US-Iran diplomacy, but the two sides remain divided over control of the waterway. Money markets are pricing slightly more than 40 basis points of additional ECB (European Central Bank) tightening by year-end, with a September rate hike almost fully priced in. Reuters reported that ECB policymakers are prepared to raise rates at their September meeting to contain the economic fallout from the Iran war, although they remain reluctant to signal further tightening afterward. Eurozone bond yields reached multi-year highs last week as investors assessed the inflationary effects of higher energy prices and increased government spending.