The announcement of the Council’s decisions contributed to a sudden and significant reduction in public bond spreads; the peak of around 250 basis points reached in the spread between Italian and German ten-year government bond yields shortly before mid-June is inconsistent with the fundamentals of Italy’s economy.
The context is still one of high volatility: it therefore remains crucial to prevent financial conditions from becoming excessively tight, as this would have serious repercussions for financial stability, for economic activity and, ultimately, for medium-term price growth.