FULL SUCCESS FOR THE AUCTIONS IN ITALY AND SPAIN. RCS GOES BOOM IN MILAN. AND MEDIOBANCA RUNS
Mission accomplished. The auctions in Italy and Spain confirmed the positive tone of the sovereign debt markets awaiting the interventions of the ECB.
The Italian Treasury has placed a total of 2014 billion euros on the Ctz market expiring in May 3, the maximum pre-established amount, with sharply declining yields. The average rate fell to 3,064% from 4,86% last month, which was the highest since November 2011.
The bid was 1,95 times the amount bid. Via XX Settembre also sold all the 750 million euro of inflation-indexed btp maturing in 2016 and 2019. On the 2016 maturities, the rate fell to 3,69%, down by 1,51% compared to the previous auction , while on the 2019 maturity the yield stood at 4,39%. Overall, today the Treasury has placed bonds for 3,75 billion, or the entire expected amount.
Spain fills up in an auction of 3 and 6-month bonds, placing 3,6 billion bonds on the market against a maximum target of 3,5 billion and with rates in sharp decline. The average quarterly yield dropped to 0,946% from 2,434% in July, while the six-month bond rate dropped to 2,026% from the previous 3,691%.
Before the auction, the spread between the BTP and the Bund had risen to 440 basis points, with a yield of 5,73% for Italian ten-year bonds. After the positive outcome of the offers, the Milan Stock Exchange took courage. The FtseMib index rose by 0,15% to 15.035.
Negative Frankfurt and Paris, both at -0,39%, London -0,05%. Today the Japanese government revised downwards its forecasts for the country's economy, noting that the slowdown in global growth (and in particular in the USA, China and Europe) has weighed on exports and industrial production, threatening the prospects for recovery. The euro is stable against the dollar at 1,2505 from 1,2499 at last night's close.
Stand out the leap of Rcs suspended due to excessive increases: yesterday it remained so for almost the entire session. Within the blue-chip basket it recovers Campari +0,09%, on which the draft of the government's Health decree weighs, which contains an extraordinary contribution on spirits.
Positive trend for banks starting from Ubi +4,43% after this morning's release of better-than-expected quarterly results. It still runs Mediobanca +5,16%. Positive MontePaschi +0,88% and Unicredit + 1,4% Understanding + 1,31%. Generali falls by 0,4% after the news that the Czech financier Petr Kellner has sold 1,5 million shares (0,1% of the capital). Kellner still owns 16 million Generali shares.
Finmeccanica drops by 0,77% equal to StM. Prelios takes a break after the rally, the stock is now down 1% after gaining more than 6% at the start of the session. Among the smaller cap stocks, the landslide of Dmail –7,7% after the press release announcing that the board of directors is evaluating the use of insolvency proceedings. EBITDA for the first half was negative by 1,7 million, from +2 million in the same period of 2011.
