The banks are going to make a profit off of those mortgages because we're re-entering a deflationary era. The long-term Italian debt curve is heading back down.
Discussion
Is anyone buying those with real money?
Slower inflation is not the same as deflation.
It basically is because they can never keep it stable, for long. It's always trending up or down.
Here's the euro area yield curve. Some of the countries already issue longer-term paper under this curve.