FX.co ★ Italy 10-Year Gilt Yield Moves Up

Italy's 10-year bond yield increased slightly to approximately 3.61%, aligning closely with those of other major economies, as market participants evaluated the newly released inflation data from key eurozone countries. In August, price increases among the region's leading nations remained modest. Specifically, Germany's inflation rate slightly rose but stayed near the 2% mark, while Spain's rate held steady, and France experienced further easing. In Italy, inflation decelerated to 1.6% from 1.7% in July, falling short of expectations, as energy prices increased at a slower rate. Additionally, a separate report indicated that Italy's economy contracted by 0.1% in the second quarter of 2025, aligning with preliminary estimates and against predictions of a 0.1% expansion, following a 0.3% growth in the previous quarter. Meanwhile, a survey conducted by the European Central Bank showed that consumer inflation expectations in the eurozone remained relatively stable in July, albeit slightly above the central bank's 2% target.