The yield on the Italian 10-year government bond dipped again below the 3.6% level, trading around 2-month lows, after the latest jobs report in the US bolstered expectations of forthcoming interest rate cuts by the Fed.
Earlier, the European Central Bank maintained its interest rates as anticipated but revised downwards its inflation forecasts, reinforcing the likelihood of rate cuts commencing in June.
The spread between Italian and German 10-year yields, a key indicator of Italy’s credit risk, stands at approximately 130 basis points, marking its lowest level since November 2021.
