THE TREASURE PASSES THE BOT AUCTION TEST
BUSINESS PLACE TURNS UP
After theBot auction at 12 months to Stock Exchange Milan gains 0,47% , ahead of London +0,09, Paris +0,17% and Frankfurt +0,4%.
The Treasury has placed all 8 billion euro of one-year BOTs on the market, recording an average yield of 2,767%, slightly higher than the 2,697% of the July auction. Demand was good, exceeding the amount offered by 1,69 times, up from last month's 1,55. In the morning, the spread between the ten-year BTP and the equivalent German Bund had risen to 455 basis points. The Treasury bond rate is 5,91%. Spain's differential also increased to 552 basis points, with the Bonos yield at 6,88%.
Il public administration debt in June increased by 6,6 billion compared to the previous month, reaching a new all-time high of 1.972,9 billion, an increase mainly due to the increase in liquid assets held by the Treasury (by 10,3 billion, to 46,1 billion) and issue discounts (1,7 billion), which more than offset the surplus of 5,4 billion recorded in the month. The latter, Bankitalia states in the Supplement to the Statistical Bulletin 'Public finance, requirement and debt', was reduced (and consequently the debt increased) by 0,2 billion (1,4 billion in the same month of 2011) from the quota pertaining to Italy of disbursements made by the European Financial Stability Facility (EFSF).
Still today, Germany places up to 4 billion euros of 6-month government bonds. France offers a total of 7,2 billion euros of government bonds with maturities of 84 days, 161 days and 343 days.
The euro is barely moved against the dollar to 1,227 from 1,228 at Friday's close: the single European currency is on the fifth consecutive day of decline against the dollar.
Il Petroleum type Wti trades at 92,9 dollars a barrel +0,1%, supported by tensions in the Middle East.
The two major banks rise in Milan. Unicredit +2,34% and Intesa +1,83%. Mediobanca +1,32% and Popolare di Milano +1,72% also rose.
Diasorin salt by 0,6% and Parmalat by 0,5%.
Mediaset gains 0,63%, Saipem drops by 1,1%.
Among the small caps Saras rebounds and scores an increase of 1%: Credit Suisse has raised its rating to neutral from underperform. Carraro also did well +2,4% which reached its maximum since the beginning of May. Poltrona Frau +1,7%.
Prelios loses 3%. La Repubblica on Saturday writes that the real estate company may need to launch a capital increase of up to 150 million euros to cover the losses generated by a series of asset write-downs. The newspaper reports that Prelios will close the half year with a loss of 120 million euro. Meanwhile, the Financial Times reports that the crisis in the commercial real estate sector in Italy is even worse than the Spanish one.
