BTp Italia: Pietroluongo (MTS) says it is in line with previous issues; consistent issuance pays off

It’s good that the Treasury is giving more and more scope to retail instruments

The performance of the BTp Italia Sì, which has so far attracted over €6 billion in orders, “is consistent” with that of the most recent retail-focused inflation-linked BTp issued, and it is good for investors that there is “consistency” in the Treasury’s retail bond issues. This was stated by Ciro Pietroluongo, general manager of MTS (the Italian government bond trading platform), commenting on the progress of the placement of the new 5-year inflation-indexed Treasury bond.

"I don’t think the stock markets’ reaction to the announcements of the peace agreements is having much of an impact on demand, because the specific nature of the security is that it is an investment which provides the investor with a certain kind of protection, and that is why it is chosen" he added, commenting on the suggestion that the rise in share prices over the last few days might have had some impact on demand for the shares.

"In my view, consistency is key in this type of issuance," he emphasised. "It is now clear that the Treasury is devoting an increasingly significant focus to the retail market, and it is good that it is doing so consistently, including by comparing different instruments. In this case, it is an inflation-linked instrument: the instrument may change, but it is important to maintain consistency in targeting the retail market.”

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