Italy’s 10-Year BTP Yield at Over One-Year Low

2026-02-27 11:04 By Joana Ferreira 1 min. read

Italy’s 10-year BTP yield held at 3.3%, close to its lowest level since December 2024, as investors digested recent inflation data and its potential impact on European Central Bank policy.

Germany’s EU-harmonized inflation rate slowed to 2.0% in February, edging below the 2.1% consensus.

By contrast, France’s HICP picked up to 1.1% from 0.4% in January, while Spain’s rate climbed to 2.5% from 2.4%, with both readings exceeding market expectations.

Italy’s inflation data is scheduled for release on March 3.

Money markets currently assign only a 30% probability to an ECB rate cut by December.

Speaking to the European Parliament on Thursday, ECB President Christine Lagarde said headline inflation is expected to converge toward the 2% target over the medium term, with food inflation, key to consumer perception, projected slightly above 2% later this year.

She added that the ECB will monitor currency movements but does not plan direct intervention in foreign exchange markets.



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Italy’s 10-Year BTP Yield at Over One-Year Low
Italy’s 10-year BTP yield held at 3.3%, close to its lowest level since December 2024, as investors digested recent inflation data and its potential impact on European Central Bank policy. Germany’s EU-harmonized inflation rate slowed to 2.0% in February, edging below the 2.1% consensus. By contrast, France’s HICP picked up to 1.1% from 0.4% in January, while Spain’s rate climbed to 2.5% from 2.4%, with both readings exceeding market expectations. Italy’s inflation data is scheduled for release on March 3. Money markets currently assign only a 30% probability to an ECB rate cut by December. Speaking to the European Parliament on Thursday, ECB President Christine Lagarde said headline inflation is expected to converge toward the 2% target over the medium term, with food inflation, key to consumer perception, projected slightly above 2% later this year. She added that the ECB will monitor currency movements but does not plan direct intervention in foreign exchange markets.
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