5/10-year BTPs / 7-year CCTeu

Italy will come to the market today to sell E1.5-2.0bln of the 5-year on-the-run BTP and E1.75-2.25bln of the 10-year BTP as well as a long E1.0-1.5bln of the 7-year on-the-run CCTeu.

• On offer will be:
• 0% Aug-26 BTP. ISIN: IT0005454241
• 0.95% Jun-32 BTP. ISIN: IT0005466013
• 0.65% Apr-29 CCTeu. ISIN: IT0005451361
• Auction history: This will be the fifth auction of the 0% Aug-26 BTP this year, which was launched on July 29. That auction saw E4.5bln nominal sold at a yield of 0.020% and a bid-to-cover of 1.29x. Since then, the following auctions we saw an auction of E2.5bln in August and then E2.0bln in both September and October. The most recent auction on October 28 saw a yield of 0.280% and a bid-to-cover of 1.53x.
• Today will be the first re-opening of the 0.95% Jun-32 BTP following its launch via auction on October 28 which saw E3.75bln issued at a yield of 1.050% and a bid-to-cover of 1.35x.
• The 0.65% Apr-29 CCteu was launched via syndication on 24 June this year, selling E6bln nominal at a yield of 0.690%. Since then, the 7-year CCteu has seen three further auctions (one issuing E2.0bln, the other two issuing E1.25bln), the last being October 28 with a yield of -0.010% and a bid-to-cover of 1.73x.
• Market Colour: Spreads to Bunds are a bit wider since the end October auction but 10-year spreads have been trading in a fairly steady 135-140bp range for the past week. There has not been a huge change in spreads following the Omicron variant news which has dominated other markets in recent days.
• Timing: Results are due shortly after the auction closes at 10:00GMT / 11:00CET.