The Italian Treasury is evaluating the launch of a new 15-year BTP. Market sources say so, specifying that the issue is on the table but that the issue is not imminent. “The Treasury is thinking about launching a new 15 year. It's not forthcoming, but he's considering it carefully. September 2028 has a good outstanding and the market situation is very good” comments a source reported by Reuters.
The last time the Treasury issued a new 15-year bond – the September 2028 BTP – dates back to January 2013. The most recent placement at auction – last March 14 at 3,85%, the lowest since the introduction of the euro – brought the total issued to 18,2 billion. Currently the benchmark quotes over 110, a very high level which helps to suggest its replacement. Furthermore, the Treasury has among its objectives that of extending the average life of the debt, which fell at the end of 2013 to around 6,4 years from 7,2 at the end of 2010, before the 2011 crisis. And a 15-year bond with a robust first tranche would make its contribution in this direction.
