The European Central Bank’s monetary tightening pushed up yields on short-term government bonds. Yesterday back The six-month bot percentage rose to 3.05%, the highest level since December 2011While the 12-month maturity note posted +3.24%, a level not seen since June 2012.
It’s all due to the ECB’s rate hike to 3% faster than expected To rein in inflation, which fell to an average of 8.6% in the eurozone in January – slightly less than the first reading of the data indicates – from 9.2% in December (a year ago the CPI showed 5.1%).
If the Italian Treasury has to pay a higher interest when it issues new public debt notes (yesterday put BOTs for 5 billion), the European Central Bank is also forced to deal with a rate hike. The institute, led by Christine Lagarde, closed in 2022 with zero profits for the first time in its historyIA, after collapsing to 192 million in 2021, due to 1.6 billion provisions to cover financial risks. So there will be noNo dividend distribution to central banks in the eurozonewhich has received 5.8 billion since the creation of the European Central Bank in 2008. The central banks of Belgium and the Netherlands have already predicted big losses for their governments.
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