The yield on Italy’s 10-year BTP was little-changed at 3.4%, near its lowest level since November 12, as investors awaited key economic data, including the country’s flash inflation figures due Friday, for guidance on monetary policy. The European Central Bank is widely expected to keep interest rates unchanged through 2026. In the US, softer-than-expected economic data and dovish comments from several Federal Reserve officials reinforced expectations of a third Fed rate cut this December. Meanwhile, Moody’s upgraded Italy’s sovereign rating from Baa3 to Baa2, the country’s first upgrade in 23 years, citing its consistent track record of political and policy stability. Italy also expects its 2025 fiscal deficit to fall below 3% of GDP, ahead of the government’s previous target of 3.3%, down from 3.4% in 2024.