European stocks are rising today as government bond yields declined away from recent peaks, but above-expected inflation continued to weigh on markets.

Inflation in the euro zone hit a record high, rising to 10% in September and beating forecasts of 9.7%, the data showed.

The pan-European STOXX 600 index rose 1.1%. Germany’s DAX gained 0.9%, Britain’s FTSE 100 gained 0.6 and France’s CAC 40 gained 1.0%.

European stocks declined, with German bond yields down 10 basis points to 2.115% from Wednesday’s peak of 2.352%, an 11-year high.

Earlier, we reported that the U.S. consumer sentiment index rose to 58.6 points in September.