MILAN, 28 FEB – The spread between BTP and German Bund closes at 157 basis points, down by 3 points compared to last Friday, in a positive session for all government bonds, perceived as safe-haven assets in the current climate of uncertainty and fear on the markets. The Italian ten-year BTP shone in Europe by reducing its yield by 12.8 basis points, which fell to 1.70%: the market is seeing the timing of a monetary tightening by the ECB expand (it prices a rate increase of 19 basis points in October against 25 on Friday) in the light of the cautious words of some members of the Eurotower such as Fabio Panetta and Mario Centeno. After the outbreak of the conflict in Ukraine, the ECB must take “decisions with caution” because “the world has become darker and our steps should be smaller,” said Panetta. While Centeno, while hoping for “a normalization” of monetary policy, admitted that the conflict could impact on when it materializes. “A scenario close to stagflation is not out of scope” so “we must calibrate our policies on this”. (HANDLE).