German 10-year Bund yields eased toward 3% as a renewed decline in oil prices helped alleviate energy-driven inflationary pressures, slightly tempering expectations for further central bank rate hikes. The shift came as reports emerged that Israel and Lebanon had agreed to implement a ceasefire and end hostilities, raising hopes for a broader de-escalation in the US-Israeli conflict with Iran. However, Tehran denied any recent progress in talks with Washington over an interim peace deal, and fighting continued in Lebanon. On the monetary policy front, markets are now pricing in a near-certain 25-basis-point interest rate hike by the European Central Bank at its June 11 meeting, with two or possibly three increases expected by the end of the year. This comes after euro-area inflation hit 3.2% in May, its highest in over two and a half years, while core inflation reached 2.5% and services inflation climbed to 3.5%, signaling broader price pressures.