Investors were cautious ahead of key U.S. consumer-price inflation data as the probability of the Fed raising interest rates next week increased. Yields on U.S. and European government bonds declined slightly but remained near multiyear highs, reflecting ongoing concerns about persistent inflation and the potential for further monetary tightening. Market participants closely watched upcoming economic indicators to gauge the timing and magnitude of future rate decisions by central banks.

The cautious sentiment underscored a delicate balance between inflation control and economic growth risks.