Latest / The European Economy Podcast with Fexingo: ECB, Eurozone, and Continental Markets
Why Peripheral Eurozone Bond Yields Are Decoupling from Germany
Episode 51 of The European Economy Podcast examines a powerful shift underway in Eurozone bond markets. As the ECB delivered its first rate hike since 2023 on June 11, 2026 — in response to energy-driven inflation at 4.2% — yields on Italian and Spanish government bonds have risen sharply relative to German bunds, widening the spread by over 40 basis points in the past month. Lucas and Luna unpack what's driving this decoupling, from the Iran conflict's impact on energy costs to the ECB's new Transmission Protection Instrument (TPI). They look at whether southern Europe can…
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