Government increasingly focused on new BTP issues, in the face of a deficit that has widened beyond even the most pessimistic expectations. The latest Istat estimates indicate a deficit at 7.4% of GDPthe highest in Europe, well above the 7.2% indicated by the government in the latest Economic and Financial Document approved in March and very far from the 5.3% expected in the NaDef approved last autumn.
An additional hole that the Treasury will have to fill with a increase in government bond issues. A rich season therefore promises to be ahead for the BTP People who are now looking to the next “special” issue of the BTP Valore at the beginning of May and to a maxi medium-long term placement announced by the Treasury.
Medium-long term placement for over 10 billion
The Ministry of Economy and Finance (MEF) has announced for Monday 29 April the issuance of Btp and CcTeu in the medium and long term for a maximum amount of 10.25 billion euros. Subscription settlement is expected on May 2, 2024.
As regards the type of securities being issued, they will be placed BTP coupon 3.35%, maturity 1 July 2029 (5th tranche), BTP coupon 3.85%, maturity 1 July 2034 (5th tranche) and the first tranche of CCTeu annualized rate 4.912%.
In detail, five-year BTPs of up to 3.25 billion euros, ten-year BTPs for a maximum amount of 3.5 billion and seven-year credit certificates of up to 3.5 billion will be auctioned.
The additional auction reserved for specialists is scheduled for April 30th and provides for the offer of an amount of 650 million euros for the five-year BTP and 700 million for the ten-year BTP, while the amount reserved for CCTeu specialists exceeds one billion.
Great anticipation for the new BTP “special edition” value
After the boom of the previous issue, which totaled over 18 billion requests, the Treasury announced one new issue of the BTP Valore for the next week from 6 to 10 May 2024.
This “special” issue will have a duration of six years, coupons paid every three months with pre-established returns that increase over time based on a 3+3 year step up mechanism. The minimum yield will be announced closer to the issue, while the extra final premium will be equal to 0.8% for those who purchase it during the placement days and hold it until maturity.
The investment can start from a minimum of 1,000 euros, always having the certainty of having the requested amount subscribed. The security is purchased at par (price equal to 100) and without commissions during the placement days.
As with previous issues, the BTP Valore can be purchased exclusively by small savers through their home banking, if enabled for online trading functions, or by contacting their contact person at the bank or at the post office where they have a current account with the securities deposit account.
6 billion Bots placed at auction
Meanwhile, this morning 6 billion 12 month Bots were placed. In particular, 1.5 billion euros of BOTs expiring on 12 July 2024 were placed, for which demand reached 2.22 billion, and the yield settled at 3.737%.
Furthermore, 1.5 billion euros were placed Bot expires August 14, 2024compared to a demand of 2.31 billion, to a weighted average return of 3.734%.
Finally, 3 billion euros have been placed Bot expires November 14, 2024against a demand that reached 4.46 billion, for a weighted average return of 3.661%.
The advantage of preferential taxation
For all government bonds there is one preferential taxation of 12.5%, the exemption from inheritance taxes, as well as – as provided for by the Budget law for 2024 – the exclusion from the ISEE calculation of up to 50,000 euros, upon completion of the implementation process of the measure.
