Italy’s Bond Yield Rises on Hawkish Central Bank Signals

2025-10-30 14:16 By Joana Ferreira 1 min. read

Italy’s 10-year BTP yield climbed to 3.4%, its highest level since October 14, as investors digested hawkish signals from both the Eurozone and US central banks.

The ECB held interest rates steady for a third consecutive meeting, noting that the inflation outlook remains broadly unchanged, while the Fed cut rates by 25 basis points for the second time this year, with Chair Jerome Powell cautioning that further easing in December is “not a foregone conclusion.” Despite higher yields, Italy’s borrowing costs fell at Thursday’s auctions, with the Treasury selling €4.5 billion of a new 10-year BTP maturing in February 2036 at a 3.46% gross yield, 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 rose to 6.1%, above expectations of 6%.



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