Italy’s 10-year BTP yield climbed to 3.46%, following European peers higher and marking its highest level since October 10, as investors favored riskier assets like stocks after strong earnings from AI giant Nvidia. Attention remains on the delayed US jobs report for guidance on the Federal Reserve’s policy outlook. The latest Fed meeting minutes also reduced expectations of a December rate cut, while in Europe, the ECB is widely expected to keep rates on hold next year. The European Commission downgraded Italy’s GDP forecast to 0.4% in 2025, from 0.7% in spring, citing weak net exports and the impact of US tariffs. Growth is projected to rebound to 0.8% in 2026 and 2027, supported by investments financed through the EU Recovery and Resilience Facility.
