The Treasury fills up, but rates go up. At the end of this morning's auction, the Ministry of the Economy placed annual BOTs for 5,5 billion euros, the full amount offered.
The average yield increased to 0,418% from 0,335% in the November auction. Demand, however, improved, with the coverage ratio rising from 1,78 to 1,84.
Immediately after the announcement of the placement result, the Btp-Bund spread increased to 138 basis points, while the Milan Stock Exchange - yesterday in the red by 2,8% due to fears related to Greece – bounces 0,75%.
Just this morning Greece placed 26-week government bonds for 1,625 billion euros and 13-week bonds for 1,3 billion euros. Yields are growing, rising in the first case from 2% to 2,15%, in the second from 1,70% to 1,80%.
Coverage was down, with demand equal to 1,81 times the offer (2,09 in the previous auction) for 26-week bonds and 1,32 times the offer (2,41 in the previous auction) for vouchers at 13 weeks.
