Italy’s Bond Yields Steady After Rating Boost

2025-11-04 11:31 By Joana Ferreira 1 min. read

Italy’s 10-year BTP yield hovered around 3.4% as investors weighed the latest credit rating update and monetary policy outlook following last week’s ECB meeting and key economic data.

Scope Ratings affirmed Italy’s BBB+ rating and raised its outlook to positive, following recent upgrades from Fitch and DBRS, citing stronger public finances and ongoing reforms.

The agency expects the budget deficit to narrow to 3.0% in 2025 from 3.4% in 2024, which could allow Italy to exit the EU’s excessive deficit procedure as soon as 2026.

Recent data showed inflation falling to a one-year low of 1.2%, flat Q3 growth, and a slight uptick in unemployment that remains near record lows.

On the policy front, the ECB kept rates unchanged for a third meeting, maintaining its inflation outlook, while the Fed delivered a second 25 bp cut this year, with Chair Jerome Powell noting that further easing in December is “not a foregone conclusion.”



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