Between 25 and 27 March 2026, the Treasury will auction a series of government bonds, different financial products that will cover both the short term, medium and long term. These are BTPs, multi-year Treasury bonds, and BOTs, ordinary Treasury bonds. These are competitive auctions, which are mainly attended by institutional investors, therefore banks and investment funds.
These auctions will also put some specific products on the market. Among these are two particular types of BTPs: short term BTPs, shorter term than normal multi-year treasury bonds, and BTP€i, which are indexed to Eurozone inflation, increasingly interesting in this period in which prices are increasing due to international tensions.
The auction of Btp Short and Btp€i
The first government bond issue at the end of March will be on the 25th of the month, when auctions will be held for two different products:
Short-term BTPs are government bonds launched in 2021, replacing Ctz (zero coupon Treasury certificates). They last between 18 and 36 months, however offering an identical structure to that of other BTPs, differing only in the maturities. Unlike other short-term government bonds, BOTs, short-term BTPs also offer the investor a semi-annual coupon, in addition to the price difference from which a significant return can still derive.
Btp€i are Treasury bonds indexed to eurozone inflation. They provide the best protection against the increase in the consumer price index, as not only the coupons, but also the invested capital are revalued according to Eurozone inflation as measured by Eurostat through the Harmonized Index of Consumer Prices (HICP) excluding tobacco.
The Bots auction on March 26th
The following day the auction of the Bots, the ordinary Treasury bills, will be held. These are the shortest-term government bonds. They do not have a coupon, their yield is given exclusively by the difference between the purchase price and the selling price. Typically, Bots can be 3, 6 or 12 months.
The Bots are therefore not used for investments, but more to deposit capital in a safe instrument that can be easily liquidated on the market in case of need, which can also defend the funds from inflation.
The auction of medium and long term BTPs
Finally, the auction of medium and long-term BTPs will be held on March 27th. Treasury bills are the main instrument for financing public debt. Their duration can vary between 3 and 30 years, but in the case of the next auction, bonds with a maturity of 5 and 10 years will be issued.
The main remuneration of these securities comes from coupons, which depend on the bond markets. They can therefore be influenced by changes in yields and therefore in the spread. More difficult, but still possible, to rely on the price difference between issuing or buying and selling.
The information contained in this article is for informational purposes only, can be modified at any time and is in no way intended to replace financial consultancy with specialized professional figures. QuiFinanza does not offer financial consultancy, advisory or intermediation services and assumes no responsibility in relation to any use of the information reported here.
