Is the Dragons Effect over? Here’s what’s behind the 200-point spread

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The question arises almost spontaneously: what happened to the Draghi effect? That “chamomile” effect that so calmed the financial markets? In short: why has the spread between BTp and Bund returned to 200 basis points, a level that had not been seen since May 2020 in the middle of the pandemic? If these questions are legitimate, analyzing the market data we understand that the Draghi effect has not disappeared: it has simply been surmounted by other factors. From the rise in global rates to the delicate economic situation …

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