According to a report published by the Italian Banking Association (ABI) on February 17, 2025, during the first 15 days of February, the gross rate of Bot at six months dropped to 2.44%as well as the gross rate of BTP at 10 years of age dropped to 3.49%.
The significant decrease in interest rates on various financial instruments, including the ordinary vouchers of the Treasury (Bot) and the Poliennial Treasury vouchers (BTP) therefore raises questions about the convenience of investingor not, in government bonds today, in a context characterized by drop -down returns and downward recordings.
Bot, BTP and other financial instruments analysis analysis
According to the ABI, in February the gross rate of the BOT at six months dropped to 2.44%, with one reduction of 9 points Base compared to January (2.53%) and 161 basic points compared to the maximum of October 2023. Parallel, even the gross rate of BTP at 10 years fell to 3.49%, with one decrease of 16 basis points Compared to January (3.65%) and 149 basic points compared to the peak of October 2023.
The same trend has recorded the Euribor rate At 3 months, which fell on average to 2.54%, recording a decrease of 16 basic points compared to January 2025 (2.70%) and a reduction of 146 basis points compared to the peak of October 2023. While as regards the longer term securities, the IRS rate at 10 yearsoften used as a reference in mortgages, decreased to 2.36%, marking a reduction of 14 basis points compared to January (2.50%) and 117 basic points compared to the maximum of October 2023.
This descent of returns, including government bonds, reflects a macroeconomic context characterized by accommodating monetary policies and by a reduction in risk prizes. What does it mean? In fact, for investors, this scenario presents both opportunities and challenges.
Is it worth investing?
If on the one hand the government bonds continue to represent an option oflow risk investmentideal for the conservation of capital and for those looking for a stable source of income, on the other hand the lower returns can be less attractive. Especially those who seek higher earnings, could be driven to consider alternatives with potentially superior returns, but with a higher risk profile.
It must be said, however, that despite the decrease in returns, Italian government bonds such as Bot and BTP maintain a crucial role in a balanced investment strategy, especially for investors with one low risk propensity.
When evaluating an investment, in fact, it is essential to carefully evaluate personal financial objectives, time horizon and risk tolerance before making decisions. For example, in some cases, it may be appropriate diversify the wallet Including a combination of government bonds and other financial instruments to balance risk and performance.
In light of what has been said, therefore, those who prefer a certain performance and want Avoid the volatility of the markets It should still continue to evaluate an investment in Bot and BPT. Considering that the 10 -year BTPs still offer a gross return of 3.49%, the investment can be interesting in a context of downhill rates even for those who have a long -term horizon.
Finally, if the ECB will continue to Cut the rates in 2025it may be worth blocking current yields on long -term BTP before they go further.
