Are the BTp people back? The Treasury raised more than 100 billion in 72 days

More than 100 billion in 72 days. If we do the math in the Treasury's pocket, we arrive at a number like that. To be precise, after the 8.5 billion raised on 13 March through a mixed auction of 3-, 7-, 15- and 30-year BTp - the Treasury 'took home' 114.55 billion in less than three months. The latest auction comes after the record recorded with the BTp Valore (18.3 billion for a single issue, an absolute record) at the beginning of March.

Plans are proceeding as planned. For 2024, the Treasury has set itself a target of raising medium- to long-term securities of between 340 and 360 billion. If we exclude from the 114.55 billion the 29.5 billion raised through ordinary Treasury bonds (including also the reopenings of previous auctions), the Treasury has raised 85 billion with medium-long term securities, 25 per cent of the final target. Considering that the first quarter of the year has not yet ended, this means that the collection programme is proceeding apace.

The spread with Germany is also falling a lot. In October 2023 it was over 210 points. Whereas now we are at 127 points. This is certainly good news. But Italy, in terms of rates paid and thus of interest disbursement by the Treasury, remains the tail end of the Eurozone. Because rates are higher (despite the recent narrowing of the spread) even than in Greece. The 10-year BTp yields 3.6 per cent while Athens' respective bonds yield 3.2 per cent. Portuguese bonds yield 2.97% and Spanish bonds 3.13%.

This means that the spreads over Germany of all Eurozone countries are narrowing reflecting the difficulties the German economy, which is in a technical recession also due to its dependence on the Chinese economy, itself slowing down, is currently experiencing.

How come Italy pays more than Greece? Because in terms of the total stock of public debt it is in the area of 2,900 billion, close to 140% of the gross domestic product ratio. A high amount for which investors demand a premium over other Eurozone countries, especially on medium-long maturities. However, this does not worry Italian savers, who are contributing to the success of the latest issues and are partly replacing the European Central Bank, which is withdrawing from monetary stimulus and thus also from the purchase of Italian debt. The BTp people are back, in a sense.