Italy's BTP Yield Retreats From Three-Year Peak
Italy’s 10-year BTP yield fell below 4.55%, retreating from a three-year high as lower oil prices eased the bond selloff amid concerns over Europe’s fiscal outlook. President Trump stated the US would not attack Iran before next month’s midterms, easing fears of further energy supply disruptions. Italy’s risk premium narrowed, with the spread over safe-haven German yields falling to 107 bps from 130 last Friday. Markets have also scaled back bets for ECB hikes, now pricing in a policy rate of 3.2% by late 2027. Still, yields remain near multi-year highs, while Italy’s debt-to-GDP ratio of 138.6% is expected to surpass Greece’s this year as the eurozone’s most indebted country. The European Commission’s finance chief urged budgetary restraint, pushing back against calls from Italy and Greece for greater budgetary flexibility. Meanwhile, the Italian government is holding talks over potential contributions from banks and energy groups ahead of its 2027 budget to be presented next week.
55%, retreating from a three-year high as lower oil prices eased the bond selloff amid concerns over Europe’s fiscal outlook. President Trump stated the US would not attack Iran before next month’s midterms, easing fears of further energy supply disruptions. Italy’s risk premium narrowed, with the spread over safe-haven German yields falling to 107 bps from 130 last Friday. 2% by late 2027.
6% is expected to surpass Greece’s this year as the eurozone’s most indebted country. The European Commission’s finance chief urged budgetary restraint, pushing back against calls from Italy and Greece for greater budgetary flexibility. Meanwhile, the Italian government is holding talks over potential contributions from banks and energy groups ahead of its 2027 budget to be presented next week.