The Treasury returns to placing short-term government bonds with a new BOT auction set for Thursday 27 August 2026. Through the sale of these bonds to investors, the Ministry of Economy and Finance (MEF) aims to raise 4.5 billion euros. For the saver the operation can be interesting but, to understand if it is really worth investing, it is not enough to rely on the gross return indicated by the auction. What must be considered in these cases, in fact, is also the award price, taxation and commissions of the intermediary, as well as the actual duration of the investment.
Bot Auction of August 27, 2026, features and calendar
The auction on August 27th puts two Bots already in circulation on the market:
- the first is the annual Bot with Isin IT0005684888, originally issued on 12 December 2025 and with expiration set at 14 December 2026. On the occasion of the new auction it will have a residual life of just 105 days. The Treasury is making 2 billion euros of nominal value available. Whoever purchases, therefore, is not making an annual investment (despite the Bot being born as an annual one), since at the time of purchase there will be just over three months left until expiry;
- the second is the six-monthly Bot with Isin IT0005725236, issued on 31 July 2026 and expiring on 29 January 2027. At the time of the auction there are therefore 151 days left until expiry. In this case the amount offered is equal to 2.5 billion euros and the residual horizon is approximately five months.
The calendar provides that:
- public bookings with intermediaries end on Wednesday 26 August;
- on Thursday 27 August, by 11 am, operators will submit requests in the competitive auction.
- The additional placement reserved for specialists will end on Friday 28 August at 3.30pm.
Returns
The final yield of these Bots is not known before the auction. In fact, the hammer price will determine it. For this reason it is more correct to think in scenarios.
For example, taking into account current market estimates:
- considering a gross yield of 2.40%, the estimated net gain is approximately 55.86 euros for 105-day securities and approximately 77.31 euros for 151-day securities;
- rising to a gross rate of 2.60%, the net gain rises to approximately 60.89 euros for the shortest maturity and approximately 84.50 euros for the longest one;
- assuming a gross yield of 2.80%, the net profit reaches approximately 65.92 euros over 105 days and approximately 91.69 euros over 151 days.
The simulation naturally changes based on the return that will actually be determined by the market, but be careful, the nominal annual return does not coincide with the profit actually collected. The Bot is a zero coupon security, therefore it does not pay periodic coupons. The investor buys the bond at a price lower than the par value and, upon maturity, receives 100.
Taxation
Compared to other forms of investment, Italian government bonds are subject to the substitute tax of 12.5%, a lower rate than the ordinary 26% applied to many other forms of financial income. However, the taxation only concerns the issue spread, i.e. the difference between the nominal value that will be reimbursed at maturity and the price paid by the investor.
Another element to consider is the commissions applicable by the intermediary. For the auction on August 27th the maximum expected limit is equal to:
- 0.05% for the Bot with a residual life of 105 days;
- 0.10% for the one with 151 days remaining.
