Italian Bond Yields at Over One-Year Low

Italy’s 10-year BTP yield declined further toward 3.3%, reaching its lowest level since early December 2024, as rising trade tensions fueled demand for safer assets after US President Donald Trump implemented a new 10% global tariff. The measure was enacted through an executive order signed last Friday, shortly after the US Supreme Court blocked several previously proposed import duties. According to Bloomberg, White House officials are preparing a formal order that could raise the tariff rate to 15%. Trump also warned that countries seeking to “play games” with existing trade agreements risk facing steeper duties, after the European Parliament halted progress on a trade deal with Washington, citing the need for greater clarity from US authorities. Meanwhile, data on Monday confirmed Italy's inflation rate dropped to 1.0% in January, its lowest level since October 2024 and well below the ECB's mid-point target of 2.0%.

Italy 10 Year Government Bond Yield decreased to 3.33%, the lowest since December 2024. Over the past 4 weeks, Italy 10Y Bond Yield lost 13.92 basis points, and in the last 12 months, it decreased 22.00 basis points.

Italy’s 10-year BTP yield fell further below 3.35%, its lowest level since December 2024, as fresh uncertainty over US trade policy drove investors toward safe-haven assets. The European Parliament said it had halted ratification of the US–EU trade agreement reached last July in Scotland with US President Donald Trump, after he announced plans to raise a temporary import tariff from 10% to 15%. Questions remain over whether the new 15% tariff will be implemented imminently in the UK or EU, despite assurances from US Trade Representative Jamieson Greer that existing deals with around 20 countries remain intact. Investors now turn to upcoming inflation figures from Germany, France, and Spain for signals on how euro strength may shape price pressures and the outlook for the European Central Bank.