European shares fell on Tuesday, government debt came under pressure and oil prices rebounded as investors braced for the latest U.S. inflation data and weighed what that might mean for central bank interest rate policy.

The regional Stoxx 600 opened down 1.1%, Germany’s Dax fell 1.8% and France’s Cac 40 fell 1.7%. London’s FTSE 100 fell 0.8%.

U.S. futures were lower, with contracts tracking Wall Street’s S&P 500 and the tech-focused Nasdaq 100 both falling.

The 10-year U.S. Treasury yield hit its highest level since late 2018 as investors sold the paper. Debt yields, which underpin global borrowing costs, rose another 0.04 percentage points to 2.82%. The yield on interest-rate-sensitive two-year government bills rose 0.03 percentage points to 2.54%.

The 10-year German Bund yield, which measures borrowing costs in Europe, rose 0.03 percentage points to 0.84 percent, its highest level since 2015.

Investors’ attention will be on the latest U.S. inflation data due later on Tuesday, as well as the consumer price index for March Expected to rise 8.4% The year-on-year growth was the fastest since 1981, according to Bloomberg estimates.

“Such numbers should support market expectations that [US Federal Reserve] ING analysts said in a note. The Fed last month raised its benchmark interest rate by 25 percentage points to 0.5%, First increase since 2018.

White House press secretary Jen Psaki told reporters on Monday that rising energy prices since Russian President Vladimir Putin’s invasion of Ukraine in late February will push up headline CPI inflation in March and that inflation is expected to be “abnormally high.” high”. She added that so-called core inflation, which strips out volatile food and energy prices, is expected to be lower.

The average cost of a barrel of oil was about $110 in March, up from about $75 at the start of the year, Psaki noted.

Oil prices, which fell on Monday, rebounded to above $100 a barrel on Tuesday.Brent crude, the international oil benchmark, rose 2.6% to $101.11 a barrel, while U.S. West Texas Intermediate rose 2.9% to $94.29 a barrel

In Asia, Hong Kong’s Hang Seng index fell earlier in the session but was up 0.7% in recent trade. China’s CSI 300 rose 1.9 percent after initially falling. Japan’s Topix fell 1.4% and South Korea’s Kospi fell 1%.