FX.co ★ Italy’s BTP Yields Fall to Late-November Low

Italy's 10-year BTP yield declined to approximately 3.40%, marking its lowest point since late November. This movement comes in response to a series of economic reports highlighting a robust domestic economy. Notably, industrial production in Italy increased by 1.4% year-on-year in November, significantly surpassing market predictions of a 0.6% decrease. Meanwhile, Germany saw a 0.2% GDP growth in 2025, successfully concluding a two-year recessionary period. With the Eurozone's inflation aligning with target levels, market speculation has solidified that policy rates will remain steady for an extended duration. On the other side of the Atlantic, the United States presented data indicating stable labor market conditions, with weekly jobless claims coming in below forecasts. This has alleviated some pressure on the Federal Reserve to implement aggressive rate cuts. Consequently, investors anticipate that the Fed will maintain current rates this month, with the possibility of two rate reductions potentially commencing in June.