Bond today – The first Bot yields 3.4% by 2025, better than many deposit accounts

2024 could be the year of the Bots again.
In fact, there will be fluctuating trends in the yields of government bonds in general and focusing on short maturities will be the best way to protect yourself for those with a low propensity for risk.
Preferring them to deposit accounts, which are profitable only in the case of smaller but stingy credit institutions, choosing those of the big ones.
It is therefore an opportunity to follow the very recent debut of the Zc Ge25 Eur Bot, the only one so far with an exact maturity of one year.
These are the characteristics: Isin: IT0005580003 Issue date: 12/1/2024 Expiry: 14/1/2025 Structure: short-term security with maturity not exceeding one year.
The remuneration, entirely determined by the issue spread (given by the difference between the nominal value and the price paid), is considered for tax purposes in advance, as the withholding tax for individual investors is applied at the time of subscription.
Denomination: 1,000 euros Amount issued: 8 billion euros.
The purchase price is fundamental (even small variations are significant) and the comparison with other pure BOT issues, all shorter.
Quotations and yields compared between Bots.
Sold for placement at 96.608 euros, equivalent to a gross yield of 3.442%, it then rose slightly, to open today at 96.909 and then fall to 96.74 euros a few minutes after the start of trading.
At the moment you can try to place an order on the placement price, i.e.
around 96.60-96.65, which represents an optimal price in the presence of an Italian ten-year bond in slight difficulty, with a yield close to 3.80%, important level for defining the future trends of our government.
If we wish to prefer BOT issues expiring in 2024, we point out December 2024 (Isin IT0005575482), at 96.9-96-96.95 euros.
It is clear that 2025 will inevitably be more profitable, with greater trade.
However, pay attention to the bid-ask spread, which tends to widen – albeit slightly – in some phases of the sessions.
The comparison between Bot and deposit accounts On the deposit account front, more profitable offers are available, with gross rates above 4%, but only from little-known institutions and also with the classic penalty of the restriction.
Bots, on the other hand, represent a much more flexible alternative and calibrated to the different needs of individual investors, especially in terms of entries and exits and transparency of operations.

Author: Hermes A.I.

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