ECB's Lagarde:
- Fight against fragmentation is preconditioned to success of monetary policy
- Must preempt fragmentation
Looking at the Italian 10 year yield vs. the German 10 year yield, the spread had risen to a high of 253 basis points last Thursday, but has since tumble back down toward 198 basis point currently.
That is still up sharply from the 2022 low of 129 basis points reached the 1st trading day of the year.
Italy verse Germany 10 year yield spread