German two-year bond yield rose intraday to 2.7985%, the highest since July
2024, as markets worried an Iran conflict could lift energy prices, re-ignite
inflation and force further central-bank tightening. Later, US June CPI cooled
more than expected, bolstering expectations of a milder Fed path and trimming
euro-area yield gains. Money markets now price the ECB deposit rate at 2.68% by
December (current 2.25%), fully pricing a 25bp hike in September.