In November there will be a total of five government bond auctions, two for BOTs, two for medium and long-term bonds and one for Short Term BTPs and BTP€i.
The auctions take place on a specific date, but they also have two other important dates to note: that of communications, to know the details of the securities put up for auction, and that of financial settlement, when the securities actually pass from the State to whoever purchased them.
The November BOT and BTP auction calendar
The dates to note for the November calendar of Italian government bond auctions are:
- November 11th for the Bot auction;
- November 12 for the auction of medium and long-term bonds;
- November 25th for the auction of Short Term BTPs and BTP€i;
- November 26th for the second Bots auction;
- on November 27 for the second auction of medium and long-term bonds.
These are the dates of the auctions, which end at 11 in the morning. Private individuals cannot participate, but they can mandate an intermediary, often their own bank. An operation that can be carried out through home banking.
The November Bot auctions
There will therefore be two different Bot auctions, as often happens, one at the beginning and one at the end of the month. For the first, the full dates are:
- November 6 for communication;
- November 11th for the auction;
- on 13 November for the financial regulation.
For the second Bots auction, however, the dates to note are:
- November 23 for communication;
- November 26th for the auction;
- on 30 November for the financial regulation.
Bots are very short-term government bonds, which usually last up to a maximum of one year. They have no coupons and therefore their yield is determined only by the difference between the nominal price and the price established at auction. Bots are used to protect capital from inflation in the short term.
The auction of Short Term Btp and Btp€ in November
However, there is only one date for the auction of Short Term BTPs and BTP€i, which has the following dates:
- November 20th for communication;
- November 25th for the auction;
- on 27 November for the financial regulation.
Even if they are issued at auction together, Short Term BTPs and BTP€i are two very different securities. The former are normal BTPs, with a fixed coupon that determines the yield together with the sale price, but they usually have durations of no more than three or five years. Btp€i, on the other hand, are securities indexed to eurozone inflation. Their performance, therefore, also depends on this parameter.
The medium and long-term auctions in November
There are instead two auctions of medium and long-term securities. The first has complete dates:
- November 9th for communication;
- on November 12th for the auction;
- on 16 November for the financial regulation.
The second auction of medium and long-term bonds, however, has important dates:
- November 24 for communication;
- on November 27th for the auction;
- on 1 December for the financial regulation.
Medium- and long-term securities are usually of two types. There are BTPs, including ten-year BTPs, which are the ones on which the spread is determined. Then there are also CctEu, government bonds whose yield is linked to the 6-month Euribor index, the reference interbank rate on which mortgage interest is also based.
