Six billion BTP auction expected tomorrow but the market climate helps: the BTP hangs up the Bonos

A "heavy" placement of BTPs is expected for tomorrow but that shouldn't create particular problems for operators in the light of a market climate that seems to have relaxed. On the agenda is an auction of medium and long-term securities, 3 and 6-year terms, for a total of 5 billion euro. A placement that comes after yesterday's 7 billion auction of 11-year BTPs which recorded demand for 8,5 billion and today's one-year BOT which sold all 1 billion with yields falling below the '2,4%. Operators expect falling rates and good demand for both maturities, particularly expecting a rate of 250% for the three-year bond. The atmosphere is relaxed, not only by the positive outcome of yesterday's auction, by the return below 244 points of the Btp-bund spread and by the closing of the distance between the Btp and the bonos against the German bund: during the day, both securities are around XNUMX basis points. The BTP did not hang up the Spanish Bonos since mid-September. Finally, operators expect a reopening of the thirty-year BTP in November.