Ministero dell'Economia

BTP, auction 31 October: here is which government bonds the MEF will place

On October 31, the Ministry of Economy and Finance will place the last Treasury government bonds of the month via auction for a maximum total amount of 8.75 billion.
Specifically, they will be 5 and 10 year BTPs, 10 year BTPs with a residual life of 4 years and 7 year CCTeu with a residual life of 5 years.
The public can book by October 30th while applications must be submitted by 11am on October 31st.
Applications for the supplementary auction must be submitted by 3.30pm on October 31st.
All subscriptions will be approved by November 2nd.
Let's see what the main characteristics of the government bonds that the Mef will place are.
Here is which government bonds the Mef will place.
The government bonds that will be offered on this last day of October will be placed using only the marginal auction mechanism with discretionary determination of the allotment price and the quantity issued within the aforementioned emission intervals.
The minimum amount that can be subscribed is 1,000 euros.
Here's what will be placed.
Let's start with the 5-year BTPs which will be offered with an amount between 2 and 2.5 billion.
These will be securities maturing on 1 February 2029 with an annual yield of 4.1%.
The coupon payment will be on 1 February 2024.
The first short coupon for the 5-year BTPs will have a gross rate of 1.36%, corresponding to a period of 122 days out of a semester of 184.
The 10-year BTPs will have a amount offered between 3 and 3.5 billion euros.
They will be issued with a date of 1 September 2023 and will mature on 1 March 2034.
The coupon payment is in fact 1 March 2024.
The annual yield is 4.20%.
Then we have the 10-year BTPs with a residual life of 4 years proposed with an amount between 1 and 1.5 billion.
The coupon payment date is 1 December 2023 with maturity 1 June 2027.
The annual yield is 2.20% and the issue date is 1 February 2017.
Finally, 7 Year CCTeu will be offered with a residual life of 5 years .
These will be indexed to the 6-month Euribor rate and the amount offered will be between 1 and 1.25 billion euros.
The issue date will be 15 October 2022 and the maturity is set at 15 October 2028.
The annualized rate is 4.921%, the spread 0.8% while the semi-annual coupon rate will be 2.502%.
What will happen in November Having said that the last auction of the month of October, in November there are several dates to mark on the calendar for Italian investors.
Here is the list: November 9: BOT Auction; November 10: Medium-long auction; 24 November: BTP Short – BTP€i auction; November 28: BOT Auction; November 29: Medium-long auction.
Regarding the Bots, the auction of 9 November concerns securities with a maturity of one year while that of 28 November concerns six-month Bots.
read also Btp, alarm Italian government bonds.
Here's why and what can happen

Author: A.W.M.

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