MILAN – The fourth issue of the year closes by breaking through the 11 billion ceiling Btp Value.
The new edition ends with 11.2 billion raised. The last day of placement recorded demand of 970 million for 34,857 contracts.
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 calendar of upcoming auctions
The Treasury’s issuance calendar for the month of May already includes a medium-long term auction for today: 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%.
