German benchmark Bund yield is set for its first weekly drop since early August after traders on Monday priced the ECB deposit rate at roughly 3.5% by end-2027 and then pared ECB rate-hike bets. Policy-sensitive German 2-year Bund yield is poised for a sixth consecutive weekly rise. Some analysts say Fed rate-hike expectations are overdone and that rising energy prices could drag on growth and help curb inflation and monetary-tightening expectations. French 10-year bond yield rose 0.5bp to 4.45%

German benchmark Bund yield is set for its first weekly drop since early August after traders on Monday priced the ECB deposit rate at roughly 3.5% by end-2027 and then pared ECB rate-hike bets. Policy-sensitive German 2-year Bund yield is poised for a sixth consecutive weekly rise. Some analysts say Fed rate-hike expectations are overdone and that rising energy prices could drag on growth and help curb inflation and monetary-tightening expectations. French 10-year bond yield rose 0.5bp to 4.45% after touching 4.5531% on Tuesday, its highest since Sept 2008; the spread to German Bunds was 96.50bp after hitting 98.15bp on Tuesday, its widest since July 2012.