Italy’s 10-Year BTP Yield Hits Highest Since October
2025-12-02 14:57
By
Joana Ferreira
1 min. read
Italy’s 10-year BTP yield rose above 3.45%, extending recent gains and reaching its highest level since October 10, after higher-than-expected Eurozone inflation reinforced expectations that the ECB is unlikely to cut rates anytime soon.
Yields had already climbed on Monday as part of a broader global rise in sovereign bonds, after Bank of Japan Governor Kazuo Ueda indicated policymakers may consider a rate hike at their upcoming meeting.
Markets generally expect Eurozone rates to remain steady through 2026, while in the US, the Federal Reserve is widely expected to implement a third rate cut this month, with further easing possible next year.
In other news, Italy received a boost from Moody’s last week, which upgraded the country’s sovereign rating from Baa3 to Baa2, the first upgrade in 23 years, citing consistent political and policy stability.
The government expects the 2025 fiscal deficit to fall below 3% of GDP, ahead of its previous target of 3.3% and down from 3.4% in 2024.