Just noticed Italian government bonds are having a solid day relative to their German counterparts. The whole eurozone bond rates complex has been trending lower, but the Italian spread is tightening more noticeably. Looks like traders are pricing in the ECB staying patient on rates through at least April based on what I'm seeing in the money markets. Supply dynamics and ECB rhetoric seem to be the main drivers right now rather than the usual Middle East headlines. The 10-year Italian yield dropped to around 3.77% while German bond rates fell to just over 3% - decent moves for a single session. Worth keeping an eye on how this plays out if we get any fresh ECB signals.

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