Italian BTP Yield Climbs to Two-Week High

2025-10-30 10:55 By Joana Ferreira 1 min. read

Italy’s 10-year BTP yield rose to 3.4%, its highest level since October 14, as European investors reacted to the Federal Reserve’s somewhat hawkish stance ahead of the ECB’s policy decision later today.

On Wednesday, the Fed cut interest rates by 25 basis points for the second time this year, but Chair Jerome Powell warned that further easing in December is “not a foregone conclusion.” Meanwhile, Italy’s borrowing costs fell at Thursday’s auctions, with the Treasury selling €4.5 billion in a new 10-year BTP maturing in February 2036 at a gross yield of 3.46%, the lowest since November 2024.

Economic data showed the Italian economy unexpectedly stalled in Q3, weighed down by a contraction in the industrial sector and stagnant services, while the unemployment rate edged up to 6.1%, above expectations of remaining at 6%.



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