FX.co ★ Italy 10-Year Yield Hovers Around 3-Week High

Italy's 10-year government bond yield remains stable at approximately 3.60%, hovering close to its highest point since early September. This comes as markets assess the future of monetary policy amidst resurging trade tensions. Investors are still expecting at least two more 25 basis point rate cuts from the Federal Reserve this year. However, recent economic data highlights the enduring strength of the US economy and job market. In Europe, the European Central Bank's (ECB) decision to maintain interest rates for a second consecutive meeting in September has solidified the belief that the bank's easing cycle may be nearing its conclusion. Economic indicators are mixed, with the services PMI showing signs of recovery, while the manufacturing sector faces ongoing challenges. On the trade front, US President Trump has declared a 100% tariff on branded or patented pharmaceutical goods. Meanwhile, the European Commission has negotiated a 15% ceiling on US tariffs for pharmaceuticals. Additionally, there are reports that the European Commission is considering implementing tariffs ranging from 25% to 50% on Chinese steel imports.