Strong rise in yields on three-year BTPs. In this morning's auction, interest rates on bonds placed by the Treasury they shot up to 3,89%, against 2,76% in the previous auction. In all, the Ministry of the Economy sold securities maturing in March 2015 for 2,884 billion, against a maximum expected amount of 3 billion. Good question.
After the announcement of the auction results, Piazza Affari accentuated the losses. At the end of the morning, Milan was in the red by 1,7%, the worst of the main European stock exchanges. In the same minutes Paris (-0,7%) and London (-0,30%) are also negative, while Frankfurt is just over parity (+0,04%).
Lo spread between 10-year BTPs and the German Bund prices remain at 369 basis points, substantially in line with yesterday's close. Yields on our 5,47-year bonds stand at XNUMX%.
The results of today's auction are "within expectations - commented the deputy minister of the Economy, Victor Grilli -, we had strong demand and the interest rate trend must respond to the current market conditions. Auctions reflect market conditions.”
“The important thing is to have continuous good demand – Grilli explained again -, the important thing is that our government bonds have not had negative signals in terms of demand, the rates instead reflect the markets. We chose not to take all the demand that was there because we didn't have the urgency to make funding at rates that, in our opinion, are not the right ones”.
