Yields on eurozone government bonds have edged higher as markets brace for the U.S. CPI release at 12:30 GMT. The data could signal whether the Fed will bring forward a rate hike as early as September, IG analysts say. Market pricing shows a 52.5% chance of a September increase. Ten‑year Bund yields rose 1.1 bp to 3.159%, while French ten‑year yields climbed 1.2 bp to 3.978 %. Meanwhile, U.S. Treasury yields and the dollar have traded flat, with the 10‑year yield at 4.682% and the DXY at 99.873. Economists expect annual inflation to ease to 3.4% in July from 3.5% in June. The Fed’s September meeting sits on a knife‑edge between a rate rise and no increase, so the data may reduce uncertainty, notes Jens Naervig Pedersen of Danske Bank. Market odds for a 25‑bp hike are now about 53%. Investors remain cautious as the U.S. inflation numbers could pivot policy expectations and bond pricing.

Market data from LSEG and Tradeweb track these movements closely, with LSEG showing the pricing odds and Tradeweb reporting the latest yield figures. The eurozone’s cautious stance reflects lingering concerns over European fiscal dynamics and potential spill‑over effects on global markets.