European and global sovereign debt markets steadied on Monday after a sustained sell-off pushed benchmark yields through major milestones last week. Germany's 10-year Bund yield, a key reference for the euro area, was virtually unchanged at 3.624% after recording a seventh consecutive weekly advance, its longest run of weekly gains since 2022. The two-year Schatz yield was also steady at 3.310%, just below its 2023 peak. Brent crude above $105 a barrel and continued shortfalls in European natural gas storage have revived concerns about cost-push inflation, while central banks have cautioned against easing policy prematurely. European money markets now price roughly 100 basis points of further rate increases by late 2027. Heavy corporate and sovereign issuance is also pressuring dealer balance sheets and lifting the risk premium demanded for long-dated debt. U.S. Treasuries have similarly paused near record yield levels after the 10-year yield reached 5.18% and the 30-year yield hit 5.47%, its highest since 2004. Investors are holding more cash ahead of U.S. September labor-market data and August PCE inflation figures, which are expected to reinforce the Federal Reserve's hawkish stance. The Reserve Bank of Australia is poised to resume tightening, while preliminary September euro-zone inflation data are seen supporting additional European Central Bank rate increases.