MILAN – The BTP Valore reaches its fourth day of issuance with lower numbers than previous editions but sees the Treasury’s objective of reaching around ten billion in collections achieved.
On the fourth day of placement, the title dedicated to retail recorded orders for 1.56 billion, bringing the total to 10.26 billion. The offering of the new issue will continue until tomorrow at 1pm. There are over 55 thousand contracts.
Last February, on the fourth day of offering of the previous issue, total requests at the end of the day stood at 2.2 billion while, at the end of the fourth day of placement, total orders amounted to 16.9 billion.
The characteristics and yield of the BTP Valore
The new issue, we remember, expires May 2030 and provides quarterly coupons and minimum annual guaranteed rates of 3.35%, from the first to the third year, and 3.90%, from the fourth to the sixth year, and a final premium equal to 0.8% of the invested capital. Compared to the third edition, the new Btp Valore starts off stronger given that the March title had an initial yield of 3.25%, but then slowed down as the third title rose to 4%. Overall, what makes the difference is the loyalty bonus for those who subscribe now and keep the bond until maturity: we are at 0.8%, as mentioned, compared to 0.7% for the third issue. Thus the average annual coupon is fractionally more favorable, at 3.79% versus the previous 3.77%.
The Bot Auction
The Treasury, among other things, offered today at auction Annual Bots. A 7.5 billion operation expiring on 14 May 2025: the coverage ratio was 1.35 for a requested amount of over 10.1 billion and the yield obtained increased slightly by one basis point to 3.546%.
The calendar of upcoming auctions
The Treasury’s issuance calendar for the month of May already foresees a medium-long term auction for tomorrow (10 May): these are 3, 7 and 50 year BTPs for a total amount of up to 9, 25 billion and deadline at 11am for submitting applications. We then move on to the end of the month with a flurry of appointments: on the 23rd communication for Btp Short and Btpi, on the 24th Bot communication and on the 27th medium-long communication. Then, the relevant auctions on the 28th, 29th and 30th.
How to buy government bonds
The easiest way to buy government bonds is to reserve them through an authorized intermediary ahead of an auction. To do this, for example, you need to have a securities dossier from a bank to another brokerage company. The minimum denomination is 1000 euros and the securities can be subscribed for multiples of this amount.
How Bots are Taxed
What also makes government bonds attractive is the preferential tax regime enjoyed by government bonds. These instruments are in fact taxed at 12.5% on the return, while all other financial instruments are taxed at 26%.
