The yield on Italy’s 10-year government bond rose above 3.55%, hitting its highest level since June 23, as easing trade tensions supported market sentiment.
The uptick came after news that the US proposed a deal with the EU to keep a 10% baseline tariff, including exemptions for sectors such as aircraft and spirits.
However, the US has so far declined to extend these exemptions to more politically sensitive industries like automobiles, steel, aluminum, and pharmaceuticals, as requested by the EU. The bloc is working to finalize a preliminary deal this week to secure the 10% rate beyond the August 1 deadline while continuing negotiations toward a long-term agreement.
In monetary policy, markets now anticipate only one more interest rate cut from the European Central Bank this year, as officials adopt a more cautious, data-driven stance.
