Italy’s 10-year BTP yield fell below 3.35%, its lowest level since December 2024, mirroring a broader decline in European bond yields as renewed uncertainty over US trade policy increased demand for safe-haven government debt. Over the weekend, US President Donald Trump announced that he would raise a temporary import tariff from 10% to 15%, following a Supreme Court ruling that blocked his broader tariff package.
In response, EU Trade Commissioner Maroš Šefčovič met with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick, as Brussels presses Washington for clarity on its next steps. At the same time, a senior EU lawmaker called on the European Parliament to delay a vote on legislation implementing the EU’s commitments under the trade agreement.
Investors are now focused on upcoming inflation releases from Germany, France, and Spain, seeking clues on how a stronger euro may be influencing price dynamics and what that could mean for the European Central Bank’s future policy path.
