BTP Short-Term / 4y BTPei

On offer today:

• E2.25-2.75bln of the 0% Nov-23 BTP Short Term (ISIN: IT0005482309)
• E0.75-1.00bln of the 0.65% May-26 BTPei (ISIN: IT0005415416)
• Market colour: BTP Short Term yields dipped 42bp at the end of February as the Russian invasion of Ukraine shook markets. Yields have since recovered and resumed an upwards trajectory, increasing 74bp from the March 1 low, to stand at 0.477% at writing.
• Linker yields reached a Feb 7 high of -0.708%, then dropped over 155bp to below -2.40% on March 8. Linkers have somewhat recovered, with yields challenging -1.50% at the time of writing.
• BTP Short-Term spreads to the Schatz have seen volatility over the past month, increasing to 53.2bp on April 4, then falling 13bp to the April 21 low. Spreads have widened 5bp since to currently at 45.3bp.
• Breakevens on the 0.65% May-26 BTPei widened 96bp from mid-March to a high of 336.3bp on April 19. Breakevens have since narrowed 27bp over the past week.
• Timing: Results will be available shortly after the auction closes at 1000 BST / 1100 CEST.