Italy's 10-Year BTP yield rose to around 4.64%, remaining near it highest level in three years, as concerns over debt affordability and government spending across Eurozone countries, such as France and Italy, led to a broader bond selloff. Prime Minister Meloni aims to narrow Italy's budget deficit below the EU's 3% limit for 2026, as the 2026 budget plan is the last ahead of general elections next year. The narrower deficit is supported by stronger-than-expected economic growth which was revised upwards by the government to 1% in 2026 from 0.6% previously in April, and to 0.8% in 2027 from 0.6%. Defense spending was cut to €14 billion from the €22 billion previously planned. The cut eases some concerns that have lifted yields to multi-year highs, as the spread between the BTP and safe-haven Bund recorded its biggest daily jump since 2020 on October 1st. Elsewhere, Spanish PM Sanchez called a snap election after Congress rejected housing measures.