Yields on Italy’s 10-year BTPs climbed to 3.4%, a one-and-a-half-week high, as investors digested stronger-than-expected Eurozone PMI data while awaiting the delayed US September CPI release later today for clues on the Federal Reserve’s policy outlook.
The Eurozone PMI rose to a 17-month high, with services activity expanding and manufacturing returning to the neutral 50 level.
Meanwhile, Italy’s cabinet approved the 2026 budget bill earlier this month, outlining €18.7 billion in tax cuts and support measures.
The plan, which now faces parliamentary debate and approval by year-end, targets a public deficit of 2.8% of GDP in 2026, in line with the EU’s 3% fiscal threshold.