The Italian 10-year BTP yield surged to 4%, the highest since mid-December, as recent data reinforced the view that the Fed will need to postpone rate cuts. While the US economy experienced lower-than-anticipated growth in Q1, persistent inflationary pressures tempered expectations for immediate rate adjustments. According to the CME Fed watch tool, 68.1% of traders now anticipate that interest rates will remain unchanged in July, up from only 55.9% the previous day. Still, in Europe, investors are bracing for three ECB rate cuts this year, with the initial cut potentially as early as June as inflation is slowing down and economic activity is improving. Meanwhile, the spread between Italian and German 10-year yields, a crucial measure of Italy's credit risk, rose to 138 basis points, a new weekly high.
Italy 10Y Bond Yield was 3.93 percent on Friday April 26, according to over-the-counter interbank yield quotes for this government bond maturity. Historically, the Italy 10-Year Government Bond Yield reached an all time high of 14.20 in October of 1992. Italy 10-Year Government Bond Yield - data, forecasts, historical chart - was last updated on April 26 of 2024.
Italy 10Y Bond Yield was 3.93 percent on Friday April 26, according to over-the-counter interbank yield quotes for this government bond maturity. The Italy 10-Year Government Bond Yield is expected to trade at 3.60 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 3.37 in 12 months time.