Francesco Garzarelli, strategist at Goldman Sachs, among the recommendations of 2016, includes that of buying BTPs against Bunds: the gap between yields in the euro area is destined to decrease thanks to the Qe purchase plan.
The drop in new supply will contribute to favoring the performance of Treasury securities. In fact, 2016 will be a "lighter" year in terms of public debt issues, which could drop by 30 billion compared to this year, which ended with funding equal to to 410 billion euros, not counting the exchange transactions.
Tomorrow 6 billion euros will be offered in six-month BOTs with settlement on 4 January 2016. The Ministry of the Economy will also make available to investors 1-1,5 billion of the August 2017 Ctz, ninth tranche.
In the medium-long term auction on Wednesday 30 December, on the other hand, between 4,5 and 6 billion euros in 5- and 10-year Ccteu and BTPs will be made available to investors. In detail, the fifth tranche of the 5-year 1 November 2020 coupon 0,65% will be offered in a range between 1,75 and 2,25 billion. Same offer range for the ninth reopening of the ten-year bond on 1 December 2025 2%. As for the CctEu, the seventh tranche of the security on 15 December 2022 will be at auction for 1-1,5 billion.
