FX.co ★ Italy 10-Year BTP Yields Rise Amid Strong Eurozone PMI

Yields on Italy's 10-year government bonds, known as BTPs, have risen to 3.4%, reaching their highest point in one and a half weeks. This increase comes as investors process unexpectedly strong Eurozone Purchasing Managers' Index (PMI) figures and anticipate the delayed release of the U.S. Consumer Price Index (CPI) for September, which could provide insights into the Federal Reserve's future policy decisions. The Eurozone PMI has reached its highest level in 17 months, with growth in the services sector and a return to the pivotal 50 mark in manufacturing, indicating a neutral stance. Concurrently, Italy’s cabinet recently approved the 2026 budget plan, which includes €18.7 billion in tax cuts and support initiatives. This proposed budget, which now awaits parliamentary discussion and approval by the end of the year, aims to maintain a public deficit of 2.8% of GDP by 2026, adhering to the European Union’s fiscal limit of 3%.