FX.co ★ Italian 10Y Bond Yield Drops to Lowest Since 2024

Italy’s 10-year BTP yield fell further toward 3.3%, its lowest level since early December 2024, as escalating trade tensions boosted demand for safe-haven assets. The move followed US President Donald Trump’s decision to impose a new 10% global tariff via an executive order signed last Friday, shortly after the US Supreme Court blocked several previously proposed import duties.

According to Bloomberg, White House officials are drafting a formal order that could lift the tariff rate to 15%. Trump also cautioned that countries attempting to “play games” with existing trade agreements could face even higher duties. His remarks came after the European Parliament suspended progress on a trade deal with Washington, citing the need for greater clarity from US authorities.

Meanwhile, data released on Monday confirmed that Italy’s inflation rate fell to 1.0% in January, its lowest reading since October 2024 and well below the ECB’s 2.0% mid-point target.