The Italian Treasury placed this morning Ctz for two years for 3,5 billion, the maximum amount offered. Demand exceeded five billion, for a coverage ratio of 1,48. Rates rose to 2,403%, up 129 basis points. The yield reached its highest level since September 2012, double that of the auction at the end of May (1,113%). Immediately after the auction, the Btp-bund spread returned above the threshold of 300 basis points.
Also placed 5-year indexed BTPs for 509,580 million euros, well below the maximum established amount (one billion), but against requests equal to 1.179.800.000 euros. Bid to cover at 2,32. The gross yield rose to 2,91%, up 107 basis points from the last auction.
Finally assigned 15-year indexed BTPs for a total of 490,420 million, against a maximum amount offered of one billion. The question came in at 1.208.520.000, for a coverage ratio of 2,46. Rates have reached 3,75%.
The auction round continues tomorrow with the offer of 8 billion euro of 6-month BOTs (out of 8,875 maturing). On Thursday, however, the BTP auction will take place: according to what was communicated yesterday after the markets closed by the Treasury, between 2 and 2,5 billion of the five-year benchmark in June 2018 and the same of the ten-year benchmark in May 2023 will go to auction.
