The last BTP rod conducted by the treasure closes with Floor returns Compared to the previous auction and a still good question, confirming the attractiveness of Italian government bonds on the primary market. The placement closely follows the success of the BTP Più, placed last week with a record question. The date of regulation of today’s emissions is scheduled for February 27, 2025.
The short -term auction
The third tranche of the BTP Short Ters was placed this morning, coupon 2.55%, deadline 25 February 2027 and issue date 30 January 2025. In the face of a assigned amount of 2.75 billion of euros, on the maximum of the fork between 2.5 and 2.75 billion, there was one request voluminous equal to 4,373 billion euro. The ratio between supply and demand was 1.59.
In the face of a high demand, the yield stood at 2.38%, 23 cents decreased compared to the previous auction, but substantially in line with the performance of the analogous title listed on the market, in the face of a award price above the peer, equal to 100.36.
The amount around is 6.65 billion euros.
The 10 -year BTP auction
The auction of the eighth tranche of BTP € ia 10 years was also held this morning, deadline 15 May 2036, date issue of 15 November 2023. The title, indexed to the inflation of the euro area, attracted one application equal to 2.41 billion of euros, in the face of the 1.5 billion assignedon the maximum of the indicative fork of 1.25-1.5 billion. The Book-to-Bill Ratio stood at 1.61.
The gross performance s this emission is confirmed at 1.90%, Like the previous Finne January auction, while the award price was 99.08.
The total amount currently in circulation is equal to 10.69 billion euros.
Short term or 10 years?
The choice between the two types of titles placed in auction today on the MEF depends on the characteristics of the investment (short or long term) and the greater or lesser aversion to the investor’s risk. The Short Term title is a title of duration between 18 and 36 months, in the case of two years of age, and offers fixed coupons detached every 6 months. It is very similar to a bot, therefore suitable for investors who have a short -term perspective, but unlike Delbot, which is zero coupon, the BTP Short Term offers a coupon.
The 10 -year BTP indexed to the inflation of the euro area is instead more suitable for a drawer, who has a long -term investment perspective and, rather than the performance, aims at the protection of the invested capital and the recovery of the cost of the life, therefore indexed to the average inflation of the euro area.
