The yield on the German benchmark 10-year Bund edged lower towards 2.2%, moving further away from an over 11-year high of 2.6% touched on December 30th, as investors weighed hawkish comments from European Central Bank policymakers against hopes that the Eurozone will only get a shallow recession amid easing inflationary pressures. ECB board member Isabel Schnabel said Tuesday that financing conditions would need to become restrictive to resolve the ongoing inflation problem, adding that interest rates would need to be raised significantly at a steady pace to ensure a timely return of inflation to the 2% target, while official Robert Holzmann delivered similar remarks. On the economic data front, preliminary CPI numbers showed the inflation rate in the Euro Area fell by more than expected in December to 9.2%, returning to single digits for the first time since August. Last year, bund yields rose by almost 3 full percentage points, their biggest annual rise since at least the mid-1950s.