Government bond auctions, 19.25 billion raised between 24 and 26 June: the yields

Between 24 and 26 June, the end-of-month auctions of government bonds took place, which placed various tranches of BTPs, Bots, Btp€ and CctEu on the market. In total, the State has collected around 19.25 billion euros, which are added to the almost 9 billion of Btp Italia Sì, issued throughout the previous week.

Yields remained low, also helped by a general decline in interest on the bond markets that characterized the entire last week. Even in the case of longer-term securities, they did not exceed 3.70%.

The auction of Short Term Btp and Btp€i

The first auction to take place was that of Btp Short and Btp€i, which was held on 24 June. The results of both issues were good. The BTPs maturing in February 2028 raised 2.5 billion euros at a yield of 2.74%, while the 15-year BTP€ia brought in 1.75 billion euros with an annual coupon of 2.03%.

Coverage rates, in both cases, remained above 1.50, considered the minimum threshold for high interest in a security in this type of auction. The final returns of the Btp€i depend, by the nature of the product itself, on inflation in the Eurozone, which in 2026 should be around 3% according to the latest ECB bulletin, while from 2027 it could fall to 2.3%.

The Bot Auction

Following this, on 25 June, the auction of the BOTs, the shorter-term government bonds, was held. In total, the State obtained 6 billion euros from these securities, divided into 1.5 billion from the Bot expiring in November and 4.5 billion from the one maturing in December. Yields remained just below 2.5%.

Bots are one of the main tools for financing state expenses. There are a quantity of them in circulation with a value equal to more than 147 billion euros. Since they have a very short maturity, their yield is not determined by a coupon, but by the difference in price between the selling price and the nominal price.

The auction of medium and long-term securities

Finally, the June auctions concluded with that of medium and long-term securities, the richest in products offered. Three BTPs and one CctEu, all of which maintained yields between 3% and 3.7%.

CctEu are government bonds indexed to the six-month Euribor, one of the main indicators of the cost of money to which banks also refer to establish mortgage costs.