(Alliance News) - Geopolitical tensions continue to weigh on markets, pushing government bond yields higher: the 10-year US Treasury reached 4.63%, while the German Bund stands at 3.12% and the Italian BTP at 3.87%.

As reported by Il Messaggero on Tuesday, the European Central Bank is closely monitoring volatility, fueled by crises in the Middle East and concerns over trade policies.

Despite the bond sell-off, European banks are showing strong resilience thanks to robust capital requirements and ample liquidity buffers. Italian institutions, in particular, appear strengthened by the reduction of NPLs and capital levels well above regulatory minimums.

In Europe, however, differences between business models are emerging: French banks are struggling with funding costs but benefiting from rising rates; Deutsche Bank and Commerzbank remain solid but under scrutiny regarding real estate; while Santander and Bbva are offsetting European risks through international diversification.

In Italy, Intesa Sanpaolo and UniCredit confirmed robust results: Intesa closed the quarter with a EUR2.8 billion profit and a CET 1 ratio of 13%, while UniCredit posted EUR3.2 billion with a CET 1 of 14.2%.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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