Flattening has been evident across all developed countries. However, in Italy, short-term interest rates increased by up to 230 bps in the last week as the market weighed the country's political risk. In Spain, a similar movement shook the market as Prime Minister Mariano Rajoy received a vote of no confidence, increasing uncertainty and jeopardizing his position as head of government. Meanwhile, yield curves in Germany and the United States flattened as demand for safe assets increased.
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