**[European Bond Market Yield Curve Flattens as Market Confident in ECB's 25 Basis Point Rate Hike Next Month]** The European government bond yield curve flattened, with the short end underperforming, following the movement of U.S. Treasuries after Federal Reserve Chair Waller's speech. After Waller's remarks at Jackson Hole, the two-year government bond yields in Germany and the UK rose by 4 to 5 basis points, while the U.S. two-year Treasury yield climbed as much as 9 basis points. Waller emphasized the necessity for the Federal Reserve to curb consumer price increases, alleviating bond market concerns about the central bank's credibility in combating inflation. Pricing in federal funds rate futures now indicates a probability of over 50% for a Fed rate hike in September, up from about 36% before the speech. In Europe, European Central Bank Governing Council member Primoz Dolenc stated that there is ample justification for a rate hike next month. The swap market currently assigns a 100% probability to a 25 basis point rate hike by the ECB. German bond yields rose 2 basis points to 3.27%, German bond futures fell 9 to 123.84, Italian 10-year bond yields rose 2 basis points to 4.09%, and the Italy-Germany bond yield spread narrowed by 1 basis point to 82 basis points. French 10-year bond yields increased by 1 basis point to 4.10%, while UK 10-year bond yields rose 2 basis points to 5.05%. (Cailian Press)