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3/7/30-year BTPs

ITALY AUCTION PREVIEW
MNI (London)
  • On offer today:
    • E1.5-2.0bln of the 1.20% Aug-25 BTP (ISIN: IT0005493298)
    • E3.25-3.75bln of the new 2.80% Jun-29 BTP (ISIN: IT0005495731)
    • E0.75-1.00bln of the 3.45% Mar-48 BTP (ISIN: IT0005273013)
  • Market colour: 3-year BTP yields had been rising since the April 11 launch, reaching a high of 2.043% on Monday. They have since fallen close to 50bp to 1.550% at time of writing.
  • Following a 30bp dip at the end of February at the onset of the Ukraine war, the originally 30-year 3.45% Mar-48 BTP has seen yields rising over the past months. A high of 3.434% was reached on Monday, and have fallen back approx. 30bp to 3.056% at time of writing.
  • 3-year BTP spreads to the 0% Oct-25 Bobl widened to 137bp on Monday, and have since narrowed around 20bp.
  • 3.45% Mar-48 BTP spreads to the 1.25% Aug-48 Bund have been relatively volatile over the past three months, trading between the March 30 low of 179bp to the May 9 high above 220bp. Spreads have since narrowed to around 207bp.
  • Timing: Results will be available shortly after the auction closes at 1000 BST / 1100 CEST.

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