Is the effect of the dragons over? This is the reason for the 200 pips spread

The question almost automatically arises: What happened to the Draghi effect? The effect of “chamomile” that calmed the financial markets? In short: why did the spread between BTp and the Bund go back to 200 basis points, a level not seen since May 2020 in the middle of the pandemic? If these questions are legitimate, then we understand when analyzing market data that the Draghi effect has not disappeared: it has been outweighed by other factors. From rising global prices to the delicate economic situation…

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