BTP Valore raises 3.4 billion, ‘Insieme’ 1.1 billion
On the first day of the placement, demand for the standard bond was three times higher than for the one with the super-high final coupon
Key points
The first day of the twin placement, in which the Treasury today offered the BTp Valore and the BTp Valore Insieme on the market, closed with total demand of 4.597 billion.
The figures
More specifically, the ‘traditional’ BTp Valore (the one with ‘step-up’ periodic coupons) proved most popular amongst the retail customers it is aimed at, attracting orders totalling €3.417 billion across more than 102,000 contracts. The response from small savers was more muted for the BTp Valore Insieme, which pays a lump-sum coupon together with the repayment of principal (without scheduled coupons): in this case, orders totalled €1.18 million, with around 45,000 contracts subscribed. The two bonds are on offer from today until 1.00 pm on Friday 23 October, unless the offering is closed early.
Spreads on the rise in Europe
There was heavy selling in European government bonds today, particularly those of peripheral countries, with France in the spotlight as it grapples with social unrest, political instability and rising public debt, followed by Italia. The yield on the 10-year OAT jumped to 4.92 per cent, up 14 basis points from Friday, with the spread against the German Bund rising to 147 points. The yield on the 10-year BTP also rose to 4.56% (+9 bp), with the spread over Germany climbing to 111 points from 106 at the previous close.
