The auctions of BTPs, BOTs and CCTEUs at the end of May have concluded, with a total collection for the Treasury exceeding 25 billion euros. Yields remained in line with the average of the latest issues, at around 2.5% for shorter-term financial products and above 3.7% for medium and long-term ones.
Demand was sustained in almost all cases, with only one product falling below the 1.5 coverage ratio threshold.
The results of the Btp Short and Btp€i auction on May 26th
The first auctions held at the end of May were those of 26 May, where Short Term BTPs and two different BTP€i were offered, one 5 and one 20 years. As regards the former, these are typical BTPs with a short maturity, only three years. Demand was good, with a coverage ratio of 1.62.
Btp€i, on the other hand, are different products, linked to Eurozone inflation. Even in these cases, demand was good in the case of shorter-term securities, again 1.62, and very good for longer-term ones, 1.81 coverage ratio. In total, the state raised 5.875 billion euros from these auctions.
| Government bonds | ISIN code | Expiration | Gross return | Total amount awarded |
|---|---|---|---|---|
| Short Term BTPs | IT0005692410 | 02/28/2028 | 2.73% | 3 billion euros |
| Btp€ia 5 years | IT0005657348 | 08/15/2031 | 0.89% | 1.725 billion euros |
| Btp€ia 20 years | IT0005706293 | 02/15/2046 | 2.25% | 1.15 billion euros |
How did the Bot auction on May 28th go?
On the second day of auctions at the end of May, the Treasury offered only one government bond, a 6-month BOT. These bonds have no coupon. Their return is determined entirely by the price difference between the time of purchase and that of maturity. These are securities used primarily to protect investments from short-term inflation.
Demand for this auction was slightly low, a coverage ratio of 1.47, slightly below the threshold of 1.5 considered the limit for healthy demand. The result was high returns of 2.411%, driven by a weighted average price of 98.776. In total, the Treasury raised 8.25 billion euros.
The medium and long term auction
The last auction of the month, which took place on May 28, was that of medium and long-term government bonds. These are five titles from two different categories. The normal BTPs, 5, 10 and 20 years, and the CctEu, a variable rate government bond linked to the 6-month Euribor.
| Government bonds | ISIN code | Expiration | Gross return | Total amount awarded |
|---|---|---|---|---|
| 5 year BTP | IT0005707614 | 01/06/2031 | 3.16% | 4.2 billion euros |
| 10 year BTP | IT0005706285 | 01/07/2036 | 3.77% | 3 billion euros |
| BTP at 20 years | IT0005177909 | 01/09/2036 | 3.75% | 1.5 billion euros |
| CctEu at 10 years | IT0005707689 | 04/15/2036 | 3.25% | 2.3 billion euros |
| CctEu at 10 years (9 remaining) |
IT0005680753 | 04/15/2035 | 3.17% | 1.437 billion euros |
Demand was high for all the securities offered, with a coverage ratio always above 1.5 and in some cases up to 1.75.
