The “Christmas gift from the ECB” is starting to bear fruit

At the close of the markets on Thursday 12 January, the interest rate (yield) on 10-year Italian government bonds fell below 4 per cent. This level is lower than those recorded in the days following 15 December 2022 when the European Central Bank (ECB) raised the refinancing rate to 2 percent and signaled a future restrictive monetary policy given the trend in inflation. How is it possible, therefore, that Italian interest rates have decreased, net of the initial mechanical impact, given the moves of the ECB?