New historic record for returns on BTP at 10 and 5 years. This morning the Treasury placed government bonds for a total of seven billion: two billion ten-year bonds with a gross yield of 2,08%, 36 basis points less than the end-October auction and well below the previous all-time low (2,39%), and 3,5 billion five-year Btp with rates lower than 1% for the first time, at 0,94% (1,06% the previous minimum).
As regards demand, the coverage ratio was respectively 1,58 (requests for 3,16 billion) and 1,46 (requests for 5,12 billion). The Treasury has also assigned 1,5 billion CcTeu maturing on 15/12/2020 with a yield decreasing to 1,10%.
After the announcement of the result of the auction, the Milan Stock Exchange travels up by 0,3%, while the Btp-Bund spread stands at 140 basis points.
