BTp Italia, minimum yield at 1.85%. What you need to know

The minimum yield of the BTp Italia on offer from Tuesday, 27 May 2025, will be 1.85%. To top it all off, for those who buy the bond this week and hold it until maturity on 4 June 2032, will be the loyalty premium of 1%. In these cases, therefore, the minimum annual yield over the seven-year life of the new government bond, calculated as a matter of course net of the inflation peg, will be marginally below 2%; without the premium, the average coupon weight will drop by 0.14%.

The light was shone on the numbers by the Treasury on the eve of the three-day event for households and small investors. At the end, on Thursday afternoon, the Ministry of the Economy will be able to confirm the rates, or adjust them upwards if market movements require it in the meantime. Friday, as per tradition, will close with institutional investors.

The issue number 20 of the BTp Italia arrives at the same time as the maturity of issue number 15, the one launched in May 2020 with Italy in the midst of a pandemic with the declared objective of financing the extraordinary expenses of the health emergency. Of the almost14 billion raised then on the retail market, approximately 6 billion arrived at maturity: which now, therefore, seek new placement.

This is the main reason for the Treasury's planned return to the inflation-indexed bond, which since last year, partly due to the extinguishing of the price flare-up generated by the intersection of economic recovery and the war in Ukraine, had ceded centre stage in retail to the BTps titled to Value.

But the constant twists and turns generated by the White House's twists and turns on tariffs now make an inflation-based bet impossible, and may therefore fuel renewed demand for protection against price dynamics. The nominal capital will still be guaranteed at maturity even in the currently rather unlikely event of deflation.