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The yield on Italy's 10-year government bonds has fallen below 4.55%, retreating from a three-year high.

The yield on Italy's 10-year government bonds has fallen below 4.55%, retreating from a three-year high.

智通财经智通财经2026/10/09 09:06
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⑴ Italy's 10-year government bond yield fell below 4.55%, retreating from a three-year high as falling oil prices eased the bond sell-off triggered by concerns surrounding Europe's fiscal outlook. ⑵ US President Trump stated that the United States will not attack Iran before next month's midterm elections, easing market concerns about further disruptions to energy supplies. ⑶ Italy's risk premium narrowed, with the yield spread over safe-haven German government bonds dropping to 107 basis points from 130 basis points last Friday. ⑷ The market has also reduced bets on European Central Bank rate hikes, now expecting the policy rate to be 3.2% by the end of 2027. ⑸ However, yields remain near multi-year highs, and Italy's debt-to-GDP ratio of 138.6% is expected to exceed that of Greece this year, making it the most indebted country in the Eurozone. ⑹ The European Commission's fiscal chief urged budget restraint, rejecting calls from Italy and Greece for greater budgetary flexibility. ⑺ Meanwhile, the Italian government is in talks with banks and energy groups about possible contributions as it prepares to submit the 2027 budget next week.

⑴ Italy's 10-year government bond yield fell below 4.55%, retreating from a three-year high, as falling oil prices eased bond sell-offs driven by concerns over Europe's fiscal outlook. ⑵ US President Trump stated that the US will not attack Iran before next month's midterm elections, alleviating market concerns about further disruptions to energy supply. ⑶ Italy's risk premium narrowed, with the yield spread over safe-haven German bunds dropping from 130 basis points last Friday to 107 basis points. ⑷ Markets also scaled back bets on European Central Bank rate hikes, now predicting the policy rate will be 3.2% by the end of 2027. ⑸ However, yields remain near multi-year highs, and Italy's debt-to-GDP ratio of 138.6% is expected to exceed Greece's this year, making it the most indebted country in the eurozone. ⑹ The European Commission's finance chief urged budget restraint, countering calls from Italy and Greece for greater budget flexibility. ⑺ Meanwhile, the Italian government is in talks regarding possible contributions from banks and energy groups to prepare for the 2027 budget submission next week.
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