Italy’s 10-year bond yield edged down to around 3.596%, in line with other European peers, after Fed Chair Powell opened the door to rate cuts in the near future in his Jackson Hole remarks.
He noted that growth has moderated and the labor market appears weaker than previously believed, even as inflation risks persist due to the impact of tariffs.
The ECB wrapped up its rate-cut cycle in July after eight cuts, but markets still see a 45% chance of another cut this year, with September expected to be a pause.