Italy’s 10-year bond yield edged above 3.62%, moving in step with other European markets, as investors reconsidered policy outlooks from both sides of the Atlantic. The uptick followed Fed Chair Jerome Powell’s hint at possible rate cuts during the Jackson Hole symposium, which briefly boosted global markets last week. However, that optimism faded as investors realized the ECB has already eased more aggressively than the Fed, putting the eurozone further ahead in the current rate-cutting cycle. The ECB wrapped up its rate-cut cycle in July after eight cuts, yet markets still see room for additional cuts if US tariffs begin to pressure the eurozone economy. While ECB President Christine Lagarde stopped short of signaling any new policy moves, other officials have indicated a preference to pause for now - highlighting the market’s ongoing uncertainty over the direction of rates. The focus now turns to upcoming Italian inflation figures due on August 29.