Tomorrow 13 October three tranches of BTPs will be auctioned, with maturities of 3, 7 and 15 years. This is a regular auction of Italian government bonds, but the moment is particularly favorable for investors. The returns on the markets are in fact very high and therefore investments in Italian public debt are more convenient even just than before the summer.
The coupons of all these products are above 3%, but their yields also reach 4%, if you compare them with the other tranches already on the market. The Treasury will release up to 7 billion euros of BTPs onto the market on this occasion depending on operator demand. For all BTPs up for auction, booking by the public will take place by today 12 October, booking of applications by 11am tomorrow, booking at the additional auction by 3.30pm on 14 October and settlement will take place by 15 October.
The 3-year BTP expiring in September 2029
The first security, the 3-year BTP expiring in September 2029, has the following characteristics:
- ISIN code, IT0005716839;
- tranche, seventh;
- issue on 6/15/2026;
- expires 9/15/2029;
- 3% annual coupon;
- date of first coupon payment 3/15/2027;
- maximum amount offered 2.5 billion euros plus an additional 500 million.
Comparing it with the other tranches already on the market, the gross yield of this security could be around 3.70%, bringing the net yield to 3.24%.
The 7-year BTP expiring in September 2033
The 7-year BTP, with a slightly longer maturity, is aimed at investors looking for medium-term instruments. Its characteristics are:
- ISIN code, IT0005722845;
- tranche, fifth;
- issue on 7/15/2026;
- expires 9/15/2033;
- annual coupon of 3.35%;
- date of first coupon payment 3/15/2027;
- maximum amount offered 3 billion euros plus an additional 600 million.
Also in this case it is possible to compare the yields of the tranche already on the market, deducing that the yield could approach 4% gross, i.e. 3.6% net.
The 15-year BTP expiring in September 2041
For the long term, a 15-year BTP will be presented with maturity in September 2041. Its characteristics are:
- ISIN code, IT0005694630;
- tranche, sixth;
- issue on 02/10/2026;
- expires 01/10/2041;
- annual coupon of 3.95%;
- date of first coupon payment 01/04/2027;
- maximum amount offered 1.5 billion euros plus an additional 300 million.
The yields of this BTP are particularly high on the market, equal to 4.58% gross, more than 4% net.
How to buy BTPs at auction
BTPs cannot be purchased at auction directly by private individuals. The auctions are reserved for so-called specialists, mostly banks and institutional investors, who however can act as intermediaries for their clients.
To ask your bank to buy a BTP at auction for you, you just need to have a current account and a securities deposit at that institution. Through home banking, you can then make a request, with a minimum amount of 1,000 euros.
