This morning Italy placed government bonds for almost 8,3 billion euros. In particular, three-year BTPs were placed for a value of 3,5 billion (the demand was 4,68 billion) with a yield of 3,424%, down by 0,023%. As for the ten-year securities issued, their value is 2,951 billion (demand for 4,43 billion). In this case, yields fell to 4,73% (-0,11%). Conversely, the rate on 7-year CCTeu (issued for 2,95 billion) rose to 3% (+0,119%).
“All in all, a fairly good auction – comments Elia Lettuga, strategist of Unicredit – they managed to sell almost all the BTPs and a little less than the maximum of the CCTeu. The bonds sold off a bit before the auction but demand was also good as liquidity is constrained by the UK bank holiday. Rates are also in line with previous auctions”.
According to Ing Bank strategist, Alessandro Giansanti, “the most important auction was the 10-year one, where the greatest risks were concentrated: the bid to cover was high, the highest in 2011 together with that of March, even if they issued a little less. A comforting result given what is happening in Greece, but also for example on the Spanish debt”. As for the 3-year auction, "it wasn't exceptional, but it must be said that the 2-3 year segment is the one that has performed best since the beginning of the year and some expectations of a rate hike may have weighed on it".
