Italy’s 10-year BTP yield slipped toward 3.4%, its lowest level since January 15, as investors awaited the delayed US jobs report for clearer signals on the Federal Reserve’s policy path. January payrolls are expected to show a modest gain, underpinned by fewer layoffs in seasonal industries. Still, caution persists after several US officials, including White House economic adviser Kevin Hassett, warned that employment growth may cool in the coming months.
In Europe, markets weighed signs that the European Central Bank remains largely unconcerned by the euro’s recent appreciation, alongside reports that Bank of France Governor François Villeroy de Galhau, regarded as a dove, will step down earlier than previously anticipated. ECB President Christine Lagarde said last week that euro area inflation is in a “good place,” downplaying worries about the strength of the single currency.
