Italy’s 10-year bond yield held near 3.60%, close to its highest since mid-July, as markets weighed encouraging diplomatic signals toward ending the Russia-Ukraine conflict and awaited guidance from the US Federal Reserve. Following a “successful” meeting between Trump, Zelensky, and European leaders, the US President pledged support for Ukraine’s security in any peace deal with Russia, while investors await further details. On the monetary front, expectations remain that the ECB will keep rates unchanged in September, with the eurozone outlook broadly stable after the EU reached a trade deal with the US. Inflation is already at the ECB’s 2% target, providing further reassurance for policymakers. Market participants are now focused on Powell’s Jackson Hole speech on August 22 for guidance on monetary policy, with a 0.25% rate cut next month largely priced in.