BTP Short Term and BTP € i in issue, what they are, how much they make and who should invest

The Ministry of Economy has announced the issue of two new government bonds: BTP Short term expiring in 2027 e Btp € i (i.e. vouchers of the polienn treasure indexed to European inflation) expiring in the middle of 2036.

In the first case the annual coupon It is 2.55% gross per year, in the second to 1.80%. There is also one taxation At 12.5%, which is traditionally called “facilitated”. Facilitated because the small savers, who are in most cases accustomed to relating to the investment proposals offered by the banks or by the Italian Post Office, deal with interest in interest generally equal to 26%.

What these titles are and what differences they have

BTP Short termas the name says, is a shorter term investment (2 years) While Btp € i It is an investment a 10 years. The first, as already mentioned, provides for a higher coupon (2.55%), the second a more contained coupon (1.80%). But BTP € i has coupon and capital that come periodically re -evaluatedin addition to the minimum initial coupon.

The BTP European inflation indexing mechanism recognizes the recovery of the Loss of purchasing power made during the life of the title. In any case, the title guarantees the restitution of the nominal value signed, even if one occurs during the investment price reduction.

Like all government bonds, both BTP Short Term and BTP € I allow the early liquidation on the secondary market. Those who opt for this solution should still renounce the guarantee of reimbursement of the capital to expiry, being the investment exposed to price fluctuations.

How to buy BTPs, off to auctions

The placement mechanism is that ofmarginal rod. Operators “specialists in government bonds” can participate in the auction, who act on their own and on behalf of third party customers, without any intermediation burden on customer subscriptions.

This means that buyers must pass through these channels:

• bank (going to the branch or delegating an intermediary professional);
• post Office;
• Home Banking, after enabled the online trading function.

Below is the calendar for booking and auctions:

To those who should invest

These are two investments designed for the small savers who want to block savings for a certain period of time, without the ambitions to enrich themselves but rather to buffer the inflation and, perhaps, break down the ISEE (up to 50,000 euros) to guarantee itself access to some bonus or tax deduction.

Think, for example, that the previous issue of BTP Short Term (with expiry date 28 March 2025 and annual coupon at 3.40%) was listed triple b from S & p And Fitchthat is, with falling reliability and in any case lower than that of other titles.

Those who buy, in fact, make one wager: focusing on the reduction of rates by the ECB, the securities could increase their value by offering investors a capital gain in case they are ready to sell in advance of the natural deadline.

Summary

Below is a summary card of BTP Short term And BTP € 10 years:

These proposals follow the most close BTP round plus, which was placed from 17 to 21 February 2025.