Germany's government bond yields are set to rise for a fourth straight week, the
longest run since mid-July, as investors price central banks keeping policy
restrictive amid resilient growth and persistent inflation. Renewed US-Iran
hostilities have lifted Middle East supply risk and pushed oil toward its
biggest weekly gain since mid-July. Germany's 10-year bund yield is up about 7.5
bps this week; the 2-year yield is up about 7 bps, its largest weekly rise since
mid-July. Traders price the ECB deposit rate at 2.73% by December, implying
roughly a 90% probability of another hike after September, and expect the policy
rate to reach 3% by September next year.