European bond market: German and UK government bonds remain stable, with long-term bonds slightly underperforming

German and UK government bonds have given up their gains, as uncertainty remains regarding the progress of negotiations to reopen the Strait of Hormuz, leading oil prices to recover earlier losses. Traders have largely ignored the US July inflation data, which was in line with market expectations. The market now anticipates the European Central Bank will raise rates by 39 basis points by year-end, and the Bank of England by 28 basis points by year-end. Brent crude oil prices fell 0.1% to $88.82 per barrel.