The auctions of Italian government bonds return in April. Investors will have a wide range of instruments at their disposal, ranging from short-term BOTs to BTPs with maturities of over twenty years.
The calendar, defined at the beginning of the year by the Ministry of Economy and Finance and managed by the Treasury Department in collaboration with the Bank of Italy, has already been set. Here are all the dates.
The complete calendar
The five dates to mark in the diary are as follows:
- 9 April – Bot auction;
- 10 April – medium-long term securities auction;
- 24 April – Short Term BTP and BTP€i auction;
- 28 April – Bot auction;
- 29 April – medium-long term securities auction.
Each auction will be preceded by an official communication from the Mef, with details on the type, duration and minimum guaranteed rates. For April, the communications calendar is as follows:
- 7 April communication of first Bot auction;
- 8 April communication of first medium-long term BTP auction:
- 21 April BTP Short Term and BTP€i communication;
- 23 April communication of second Bot auction;
- 24 April communication of second medium-long term BTP auction.
What the Bot Auctions will be like
In April the Ministry proposes two issues of Treasury Bills, on 9 and 28 April. Bots are zero-coupon securities. They do not provide periodic interest payments, but guarantee full repayment of the nominal value at maturity.
The yield derives from the difference between the (discounted) price paid at the subscription stage and the nominal value refunded at maturity. Typically, annual Bots are placed in the middle of the month, while semi-annual Bots close the calendar. The minimum amount to participate through an intermediary is set at 1,000 euros for retail savers.
The auction for Short Term BTTPs
April 24 is the key date for Short Term BTPs, relatively recent instruments, introduced in 2021 to replace the old Ctz (Zero-Coupon Treasury Certificates). These securities have durations of between 18 and 36 months. Unlike Bots, they provide fixed coupons with semi-annual payment. They also offer the possibility of an additional return resulting from the difference between purchase price and redemption value.
BTP issues, regardless of maturity, continue to attract demand that often exceeds the quantities offered, a sign of strong confidence in Italian public debt.
How Btp€i work
Also on 24 April, the placement of Btp€i, the multi-year treasury bonds indexed to European inflation, generally offered on a monthly basis, is expected.
These securities directly protect the purchasing power of investors. The capital repaid at maturity and the half-yearly coupons are in fact adjusted to the trend of the Harmonized Index of Consumer Prices (HICP) of the Eurozone, calculated by Eurostat net of tobacco products.
In a context in which inflation remains a factor of concern for European markets, these instruments represent a targeted solution to preserve the real value of the investment.
Medium-long term BTPs
The two medium-long term auctions, scheduled for 10 and 29 April, are dedicated to BTPs with longer maturities. These securities offer fixed rate coupons with semi-annual payment and cover a very long time period: from the shortest maturities of 3 years up to ultra-long horizons, which can even reach 50 years.
Consolidated practice provides that mainly 3 and 7 year securities are placed in the middle of the month, while towards the end of the month the offer is oriented towards 5 and 10 years, with the possible inclusion of higher maturities based on market conditions.
