Record BTp: requests for over 100 billion. Investors chasing the new decade

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public debt

Institutional requests for over 100 billion euros for the security expiring in December 2030 that the Treasury has placed for 14 billion

by Maximilian Cellino

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The headquarters of the Ministry of Economy and Finance (Imagoeconomica)

Institutional requests for over 100 billion euros for the security expiring in December 2030 that the Treasury has placed for 14 billion

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We may have become used to the rush of institutional investors to grab BTPs in the recent past. However, the requests on an Italian Treasury security never exceeded the 100 billion euro threshold as for the new ten-year period just issued for a total amount of 14 billion.

Italian returns under fate

Once again an unequivocal signal – after the examples of BTp Italy, but also of the various bonds placed through a union of banks, before and during the Covid emergency – of the ability of Italian yields to attract market attention.

In terms of yield, according to reports from Radiocor from financial sources, the new benchmark expiring in December 2030 recognizes a spread of 9 basis points on the yield of the previous ten-year benchmark, which yesterday closed at 1.55% and which today registers a bit of understandable pressure, currently standing at 1.60 percent. Much seems to make some comparisons in the rest of Europe, except Germany, which travels with its Bund at -0.40% on similar deadlines, Portugal and Spain move on yields of just over 0.50% and Greece alone offers higher rates.

Eve of the ECB meeting

The placement of the new ten-year BTp comes on the eve of a meeting in which the ECB could decide to increase the current scope of its purchase plan linked to the pending emergency (Pepp) from 750 billion euros, which initially affects government bonds Eurozone.

And in the aftermath of the first official data of the redistribution of the intervention between the various activities and the different countries, which showed that between the end of March and May Eurotower purchased 37 billion Italian public bonds with a deviation from the quota criterion participation in the ECB capital less marked than expected (4.7% more than the + 12.4% recorded in the PSPP in the same period).



Source link
https://www.ilsole24ore.com/art/btp-record-richieste-oltre-100-miliardi-investitori-caccia-nuovo-decennale-ADkaAEV

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