5/10y BTP / 5y CCTeu

Italy will come to the market tomorrow to sell up to E7.0bln of BTPs and E1.5bln of CCTeus.

• 0% Apr-26 BTP: E3.5-4.0bln of the 5-year BTP will be on offer. This will be the second auction of the bond after its launch in last month's end-of-month auction which saw E5bln sold with a bid-to-cover of 1.33x. Despite being smaller than the launch auction, the auction size is still larger than any reopening of the previous 5-year benchmark, the 0.50% Feb-26 BTP. Despite this all 5-year auctions have been well-received recently with the 1.33x seen on the last auction the lowest since 2019.
• 0.60% Aug-31 BTP: This new 10-year BTP was launched via syndication on 16 February for E10bln and tomorrow will see a further E2.5-3.0bln on offer via auction. This will be a smaller auction than the E3.75bln of the 0.90% Apr-31 BTP sold in January, but in line with the October and November taps. Bid-to-covers have ranged from 1.33-1.57x in these auctions while last month's syndication saw a book size of E68.5bln.
• 0.50% Apr-26 CCTeu: The 5-year CCEeu will also be on offer tomorrow for E1.0-1.5bln. After being launched in November for E2.5bln, the issue was reopened in January for E1.5bln. Bid-to-covers were 1.58x and 1.52x respectively. We would expect to see a similar result at tomorrow's auction.