Geopolitical tensions, particularly those stemming from the conflict in Iran, are causing a noticeable flattening of the Italian government bond (BTp) yield curve. This development significantly impacts forecasts for European Central Bank (ECB) interest rates and influences the performance of long-term maturities. Persistent uncertainty continues to be a key factor, shaping future yield outlooks. The ongoing situation in Iran has a tangible effect on BTp yields, with these geopolitical tensions clearly reflected in the bond market’s yield curve dynamics.
