The Ministry of Economy has revealed a new issuance of 3 and 7-year BTPs, with a maximum value (excluding the supplementary auction) of 6 billion euros. The auction is scheduled to take place on December 13th and 14th.
To reserve these securities, with a minimum value of 1,000 euros, interested parties can submit their applications through their home banking platforms enabled for trading or visit bank and post office branches before the December 12th deadline.
BTPs are medium to long-term securities that guarantee the reimbursement of invested capital at maturity, backed by the Italian government. Throughout their lifespan, these securities will have variable prices, potentially resulting in gains or losses for investors who choose to sell them before maturity.
Notably, the taxation on yields from BTPs and other major state securities is set at 12.5%, significantly lower than the 26% levied on alternative investments such as deposit accounts, stocks, or corporate bonds.
Characteristics of BTPs in the Auction:
1. BTPs with 3-Year Maturity:
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– Ninth tranche issued on July 17th with ISIN IT0005556011.
– Anticipated coupon rate of 3.85% (note: not indicative of the actual yield, which depends on the auction price).
– Current market yield for the Italian 3-year government bond stands at 3.19%.
2. BTPs with 7-Year Maturity:
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– Seventh tranche issued on September 15th with ISIN IT0005561888.
– Expected coupon rate of 4%.
– Present market yield for the Italian 7-year government bond is 3.7%.
As the December 12th deadline approaches, potential investors are urged to consider these offerings carefully and explore the potential benefits of participating in the auction for these medium to long-term government securities.
