Yields on Italy’s 10-year BTPs hovered near a four-week high of 3.4%, as investors remained cautious ahead of Moody’s scheduled review of the country’s credit rating on Friday. Italy is currently rated Baa3 with a stable outlook, just one notch above non-investment grade, and the market sees minimal risk of a downgrade to junk status. The European Central Bank appears to have ended its rate-cutting cycle, signaling vigilance on inflation while keeping future interest rate options open. In the US, expectations for a December Fed rate cut strengthened after Challenger data showed layoffs surged to the highest October level in 20 years, tempering optimism from Wednesday’s stronger-than-expected ADP employment and ISM services reports.