Germany’s 10-year bond yield climbed to 2.734% after stronger-than-expected PMI data showed the Euro Area’s private sector growing at its fastest pace in 15 months. The composite PMI rose to 51.1 in August, above forecasts, with manufacturing recording its first expansion since June 2022. Germany’s factory sector also neared the end of a three-year slump, underscoring Europe’s resilience despite trade frictions and geopolitical risks. The upbeat data supports ECB officials arguing against rushing into further rate cuts after eight reductions since 2024, even as markets still price a 45% chance of another cut by year-end. ECB President Christine Lagarde noted the new 15% US tariff on EU goods was above baseline projections but far from worst-case scenarios. Now, attention shifts to Fed Chair Powell’s Jackson Hole speech. In the UK, hot July inflation at 3.8% has dampened expectations of further BoE easing.