Italian Yields Rise Amid Fiscal Concerns and French Turmoil
2025-09-09 09:10
By
Joana Ferreira
1 min. read
Italy’s 10-year government bond yield climbed back above 3.5% after dipping to 3.493% on Monday, its lowest level since mid-August, as investors reassessed risks tied to public finances across Europe and the US.
Political uncertainty in France added to the pressure after Prime Minister François Bayrou was ousted in a parliamentary confidence vote over the budget, while rising defense spending in Europe, Germany’s push for major infrastructure investment, and concerns over unsustainable US fiscal policies further fueled caution.
On the monetary policy front, the European Central Bank is expected to leave rates unchanged for a second consecutive meeting on Thursday as officials weigh persistent trade uncertainty and inflation that has remained on target for three straight months.
In the US, attention turns to this week’s inflation report after last week’s weak labor market data strengthened expectations for a Federal Reserve rate cut in September.