Le MEF auctions (Ministry of Economy and Finance) are ready to restart in 2024, after the issues of 2023 which reached 516 billion euros, of which approximately 360 billion in medium-long term securities and over 156 billion in BOTs. For the new year, a total gross issuance is estimated between 340 and 360 billion euros, with the start expected as early as January.
Meanwhile for Thursday 11 January, the Treasury will offer the first tranche of the Btp to 3 years. The MEF announced this in a letter note specifying that the auction of 7-year BTPs and BTPs with a maturity exceeding 10 years scheduled for the same day "will not take place due to the syndicated issue announced today". The Treasury has thus decided to stall while it waits for a progressive decline in long-term yields. In its place, another form of emission called “syndicated issue“, which is a different method of placing securities on the market. In practice, the government or issuing body will sell the bonds directly to a group of investors, rather than through a public auction.
Btp, new 3-year bond: the characteristics
With the new 3-year BTP, expires February 15, 2027, you aim to cash out an amount between a minimum of 3,75 and a maximum of 4 billion of Euro. The bond offers a coupon gross annual of 2,95%, with the first cut on February 15th, guaranteeing a current yield of approximately 2,58% net. The Treasury has announced that the first short coupon for 3-year BTPs (maturity 15 February 2027) will be 0,248505%, calculated on a six-month period of 184 days with maturities on 15 August and 15 February of each subsequent year.
Ma should? The 3-year BTP could be an interesting option for those who want to invest liquidity without taking on significant risks, considering the short repayment period.
Reservations by the public can be made by Wednesday 10 January, while the submission of applications at auction is permitted by 11am on 11 January itself. The questions for the auction supplementary must be submitted by 15pm on January 30th, while subscriptions will be settled on January 12th.
