Germany’s 10-year Bund yield climbed above 2.65%, its highest level since October 9, as investors reacted to hawkish signals from both the ECB and the Federal Reserve, alongside a stronger-than-expected German inflation reading. The European Central Bank kept rates unchanged for a third consecutive meeting in October, maintaining a data-dependent, meeting-by-meeting approach while noting that the inflation outlook remains broadly unchanged. Meanwhile, the Federal Reserve cut rates by 25 basis points on Wednesday, but Chair Jerome Powell cautioned that further easing in December is “not a foregone conclusion.” On the data front, German inflation eased less than expected to 2.3% in October, while the economy stagnated, weighed down by a decline in exports.