Germany’s 10-year Bund yield stabilized above the 3.6% mark, close to its highest level since June 2009, as investors weighed ECB President Christine Lagarde’s comments against flash inflation data and elevated oil prices. Lagarde said the recent inflation surge has yet to generate significant second-round effects across the euro area, suggesting a measured policy response remains appropriate. With eurozone inflation already above 3% and potentially nearing 4% by year-end, markets are pricing in up to four additional rate hikes over the next year, following two increases over the summer. Economists broadly expect the ECB to hold rates at its October 29 meeting and resume tightening in December, when new economic projections are due. Meanwhile, Spain’s harmonized inflation rate rose to 5% in September, its highest in three years and well above the ECB’s 2% target. Elsewhere, Brent crude remained elevated amid stalled negotiations over reopening the Strait of Hormuz.