10-year bund yields are at their highest level since 21 June

Germany's 10-year bond yields

I reckon this is helping to add a bit of impetus to the euro in the European morning session with EUR/USD up to session highs of 1.1225 currently, alongside more positive industrial output from France and Italy earlier.

There's plenty of chatter that this came in reaction to the French industrial output data earlier, which blew expectations out of the water. But in my view, it's more of a bit of position covering after yields hit -0.40% last week with traders/investors keeping an eye ahead of Fed chair Powell's testimony later today.

In turn, this has helped give a lift to US Treasury yields too. 10-year yields are up by 4 bps now to 2.105% on the session.