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3/7/15-year BTPs

ITALY AUCTION PREVIEW
MNI (London)
  • On offer today: up to E7.0bln of BTPs
    • E2.75-3.25bln of the 1.20% Aug-25 BTP (ISIN: IT0005493298)
    • E2.0-2.5bln of the 2.80% Jun-29 BTP (ISIN: IT0005495731)
    • E1.0-1.25bln of the 3.25% Mar-38 BTP (ISIN: IT0005496770)
  • Market colour: 3/7-year BTP yields rose approx. 128bp and 116bp from the beginning of June to the June 14 highs of 3.156% and 3.906% respectively. 3-year yields have since decreased by 133bp and 7-years by 115bp off these highs, to stand back around early-June levels. The long 15-year BTP saw a softer increase in yields of just over 100bp to the June 14 high of 4.363% and has since fallen back by 88bp at the time of writing.
  • 3/7-year BTP spreads to the Bobl/Bund widened close to 80bp and 58bp from the beginning of April to the June 14 highs of approx. 179bp and 225bp and have since narrowed around 38-39bp.
  • Long 15-year BTP spreads to the Bund widened just shy of 40bp from the late-May launch to the June 14 high of approx. 247bp, and are currently back around 210bp.
  • Timing: Results will be available shortly after the auction closes at 1000 BST / 1100 CEST.

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