FX.co ★ 10-Year BTP Yield Climbs to Two-Week High

Italy's 10-year BTP yield has climbed to 3.4%, its highest mark since October 14. This comes as European investors responded to the somewhat hawkish tone from the Federal Reserve ahead of the European Central Bank's policy decision scheduled for later today. On Wednesday, the Federal Reserve lowered interest rates by 25 basis points for the second time this year, though Chair Jerome Powell cautioned that additional easing in December is "not a foregone conclusion." Concurrently, Italy witnessed a decline in its borrowing costs during Thursday's auctions. The Treasury successfully sold €4.5 billion in a new 10-year BTP, set to mature in February 2036, achieving a gross yield of 3.46%, the lowest since November 2024. Economic data revealed that the Italian economy unexpectedly stalled in the third quarter, hindered by a downturn in the industrial sector and stagnation in services, while the unemployment rate edged up to 6.1%, surpassing expectations of it remaining at 6%.