The Ministry of Economy and Finance has communicated the details of the government bond auctions on 25 and 26 June. The first to be held will be that of Bots, which will include two different securities with short maturities and without an annual coupon, the return of which will depend exclusively on the price difference between issue and redemption.
On the contrary, all the securities of the auction on 26 June, that of medium and long-term products, will have an already estimable annualized coupon or rate. These are three different BTPs and one CctEu, worth almost 11 billion euros.
The Bots auction on June 24th
The auction of BOTs, short-term government bonds, will be held on June 25th. In total, the Treasury will make 6.6 billion euros available to specialists, including additional amounts. The first of the financial products issued is a new 6-month Bot:
- Isin code IT0005719536;
- expires 12/31/2026;
- amount offered 4.5 billion euros;
- additional amount 450 million euros.
The second product is actually the reopening of the third tranche of the 6-month Bot of May 29, which therefore has a residual life of five months:
- Isin code IT0005711749;
- expires 11/30/2026;
- amount offered 1.5 billion euros;
- additional amount 150 million euros.
These government bonds have no coupons. Their return is entirely based on the price difference between issuance and redemption. As an investment, they serve above all to defend capital from inflation in the short term.
Medium and long term BTPs
The auction on May 26, however, will present three products that are very different from BOTs, the medium and long-term BTPs. These are government bonds with a duration of years, often five or more, which therefore in addition to the price difference between issue and redemption also have an annual coupon as a form of compensation for those who purchase them.
The first security offered is a 5-year BTP in its fifth tranche:
- ISIN code IT0005707614;
- expires 1/06/2031;
- annual coupon 3.15%;
- Maximum amount offered 3 billion euros;
- additional amount 600 million euros.
The second security is the fourth tranche of a 10-year BTP originally issued on 22 April 2026:
- ISIN code IT0005706285;
- expires 01/07/2036;
- annual coupon 3.80%;
- Maximum amount offered 2.5 billion euros;
- additional amount 500 million euros.
Finally, a 10-year BTP dating back to last year and now in its twelfth tranche:
- ISIN code IT0005676504;
- expires 02/01/2036;
- annual coupon 3.45%;
- Maximum amount offered 1.5 billion euros;
- additional amount 300 million euros.
The CctEu at auction on 26 June
Finally, still in the medium and long-term auction, there will also be a CctEu, a government bond indexed to the six-month Euribor, an indicator linked to the cost of money established by the ECB. Instead of having a coupon, for this very reason, it has an annualized rate, composed of Euribor and a spread defined at issue, in this case 0.8%:
- ISIN code IT0005707689;
- expires 04/15/2036;
- annualized rate 3.237%;
- Maximum amount offered 2 billion euros;
- additional amount 300 million euros.
