FX.co ★ Italy BTPs Slip as Greenland Tensions Ease

Italy's 10-year BTP yields have edged down toward 3.50%, moving back from a recent two-week high, following a de-escalation of tensions between the US and Europe concerning Greenland. At the World Economic Forum in Davos, Switzerland, US President Donald Trump announced an agreement with NATO Secretary General Mark Rutte on a "framework for future cooperation" regarding Greenland and the Arctic. Consequently, the US has retracted the threat of imposing punitive tariffs on eight European allies. On the macroeconomic side, with inflation hovering around the target and economic growth remaining stable, the European Central Bank is likely to keep interest rates steady. There appears to be minimal chance of immediate policy adjustments, indicating a preference for a cautious, observation-based approach.