2025.09.1114:01:28UTC+00Italy 10-Year Bond Yield Tick Up

Italy's 10-year government bond yield has risen to approximately 3.50%, in response to the European Central Bank's (ECB) anticipated decision to maintain interest rates and update its economic forecasts. This adjustment reflects a nuanced consideration of robust economic growth, low unemployment levels, continuing inflation, and prevailing trade uncertainties. Market participants have interpreted President Christine Lagarde's comments on balanced growth risks and the cessation of disinflation as indicative of a potential end to the rate-cutting cycle. Projections for Eurozone GDP suggest a growth of 1.2% in 2025, dipping slightly to 1.0% in 2026, and rebounding to 1.3% in 2027. Forecasts for headline inflation have been marginally adjusted upwards, with expectations set at 2.1% in 2025, 1.7% in 2026, and 1.9% in 2027. In the United States, an increase in jobless claims coupled with an inflation rate aligning with expectations has bolstered the anticipation of Federal Reserve rate cuts commencing next week.