Germany’s 10-year bond yield slipped below 2.72% from an over 4-1/2-month high of 2.779% on August 15 as investors reassessed interest rate expectations. The ECB ended its rate-cutting cycle in July after eight reductions over the past year, but markets still see a 45% chance of another cut by year-end. For now, expectations remain anchored, with the central bank seen on hold in September. Focus also turns to Fed Chair Jerome Powell’s speech at Jackson Hole following minutes that showed US policymakers remain more worried about inflation than jobs, amid divisions fueled by tariffs. In the UK, traders increasingly expect the Bank of England to pause further easing after July inflation accelerated to 3.8%, the fastest pace since late 2023, limiting scope for additional cuts.