Italy bond yields plummet as ECB rate cut expectation builds

Investors expect the ECB to cut the rate by more than 1.5% next year but officials say markets are getting ahead of themselves

The Italian 10-year yield fell to 3.55%, the lowest since late August 2022, and is on track for its biggest monthly fall since 2013, at 64 basis points.

Italy's benchmark bond yield hit its lowest level in 15 months as the government bond market rally continued despite central bank officials' efforts to rein in the exuberance.

The Italian 10-year yield, which moves inversely to the price, fell to 3.55%, the lowest since late August 2022. It is on track for its biggest monthly fall since 2013, at 64 basis points.