Italy’s 10-year BTP yield climbed back to around 3.4%, near its highest level since mid-October, as investors digested the end of the US government shutdown and assessed prospects for ECB and Fed monetary policy alongside Italy’s fiscal trajectory. Recent Eurozone data signaled economic resilience and inflation near target, reinforcing expectations that the ECB will hold rates steady for now, with markets pricing roughly a 40% chance of a 25bps cut by September 2026. In the US, bets on a December Fed rate cut eased amid signs of a softer labor market and mixed Fed signals. Domestically, Italy’s 2025 budget bill is under parliamentary review, projecting the deficit to narrow to 3.0% from 3.4% in 2024, a move that could help the country exit the EU’s excessive deficit procedure by 2026.