ECB meets to discuss bond rout as markets anticipate Fed rate rise – business live

Schmieding goes on to say:

Mind the fundamentals: Some spread widening amid an overall rise in yields is normal. As long as it remains consistent with the inflation backdrop and the pace of nominal growth, it should not present an imminent risk even for fiscally challenged Italy. We expect inflation to settle around 2.5% eventually. Adjusting for such an inflation forecast, the real financing costs of Italy are still quite bearable. Inflation…