Italy's BTP Yield Rises Toward Fresh 3-Year High

Italy’s 10-year BTP yield rose above 4.60%, approaching a fresh three-year high amid persistent concerns over Europe's fiscal position and ongoing social unrest across the continent. Mass protest in France take center stage, while protest against the rising cost of living in Milan are also in focus. In Italy's south, truck drivers and farmers protest over elevated fuel prices, leading to food shortages across the region and Premier Meloni's cabinet looking to approve new aid for the agricultural and transport sectors. The demonstrations adds to concerns over Italy’s fiscal stability ahead of next year’s elections, as its debt burden is set to surpass Greece’s as the eurozone’s highest. The draft budget deficit is seen rising to 3.4% of GDP in 2027 from 2.9% this year. Proposed measures include contributions from banks and insurers, although details remain unresolved amid industry opposition, alongside potential household tax relief and increased defence and energy spending.