Italian BTP Yields Steady Ahead of Key Inflation Data
2026-02-26 09:52
By
Joana Ferreira
1 min. read
Italy’s 10-year BTP yield hovered just above 3.3%, near its lowest level in over a year, as investors awaited Friday’s inflation reports from Europe’s largest economies for insight into how euro strength could influence price pressures and the European Central Bank’s policy outlook.
Speaking to a European Parliament committee, ECB President Christine Lagarde said headline inflation is expected to converge toward the 2% target over the medium term as wage growth eases, with food inflation, key to consumer perceptions, projected just above 2% later this year.
She added that the ECB will monitor foreign exchange movements but will not intervene directly in currency markets.
Monday’s data confirmed Italy’s inflation fell to 1.0% in January, its lowest since October 2024 and well below the ECB’s 2% midpoint target.
Markets also weighed US President Donald Trump’s new 10% global tariffs and a third round of US-Iran nuclear talks in Geneva, amid rising Middle East tensions.