Italy’s 10-year government bond yield surged toward 3.7%, its highest since mid-May, while 30-year borrowing costs climbed to levels not seen since mid-March, reflecting growing fiscal worries across Europe. Investor concerns are mounting over Europe’s rising defense spending and Germany’s planned infrastructure investments. In France, the country’s debt burden remains a key issue ahead of the prime minister’s confidence vote scheduled for September 8. Meanwhile, eurozone inflation accelerated to 2.1% in August, slightly above both market expectations and the ECB’s 2% target, reinforcing expectations that the central bank will keep interest rates unchanged at next week’s meeting.