FX.co ★ Italy’s 10-Year BTP Yield Rises

Italy's 10-year BTP yield has risen to 3.46%, in line with similar movements from its European counterparts, achieving its highest point since October 10. This increase comes as investors opt for riskier assets such as stocks, spurred by robust earnings reports from AI leader Nvidia. Market participants are closely watching the delayed US employment report to gauge the Federal Reserve’s future policy actions. Meanwhile, recent Federal Reserve meeting minutes have diminished the likelihood of a rate cut in December. In Europe, the European Central Bank is anticipated to maintain its current rates throughout the next year. The European Commission has adjusted its forecast for Italy’s GDP growth in 2025, lowering it from 0.7% to 0.4%. This revision is attributed to factors such as weak net exports and the effects of US tariffs. However, growth is expected to recover to 0.8% in both 2026 and 2027, backed by investments funded via the EU's Recovery and Resilience Facility.