The Ministry of Economy and Finance is set to raise up to €7.5 billion (excluding the supplementary auction) from the market through three new tranches of Italian Government Bonds (Btp) and Certificates of Treasury issued in euros (CctEu). These securities will be auctioned between November 29 and November 30.
The issuance comprises two Btp maturities at 5 and 10 years, accompanied by a CctEu with a remaining life of 3 years. Investors can place their bids through their trading-enabled online banking platforms or at bank and post office counters. The deadline for submitting bids is November 28.
However, opportunities to buy new Btp in auctions will be more limited in December. The Mef announced the cancellation of the auction for Btp with a maturity exceeding 10 years scheduled for December 13, the auction for Treasury Bills (Bot) and Short-Term Btp on December 27, and the issuance of medium to long-term securities proposed for December 28.
- The Btp with a 5-year maturity represents the fifth tranche of the bond issued with ISIN IT0005566408 on October 2, offering a coupon rate of 4.1%. The maximum amount for this issuance is €3 billion, with the current market yield at 3.68%.
- The Btp with a 10-year maturity is the seventh tranche issued with ISIN IT0005560948 on November 1, featuring a coupon rate of 4.2% and a maximum amount of €3.5 billion. The current market yield for the 10-year bond stands at 4.39%.
- The CctEu with a 5-year maturity and a remaining life of 3 years represents the twenty-first tranche issued with ISIN IT0005428617 on October 15, 2020. Its yield is variable and calculated based on the Euribor rate plus 0.5%.
Purchasing government bonds in primary auctions enables cost savings on transaction fees compared to the secondary market. However, the actual yield cannot be predicted in advance, as the auction price is determined by the demand and quantity of the offered securities. Investors are advised to carefully consider these factors before participating in the upcoming auctions.
