New BTP Short Term / 10-year BTPei

Italy will come to the market this morning to launch the first ever BTP Short Term while also reopening the 10-year BTPei.

• 0% Nov-22 BTP Short Term: Italy will launch its new BTP Short Term, the new category of bond that will replace CTZs. E3.5-4.0bln will be on offer of the 0% Nov-22 issue. This will also be larger than any CTZ auction since the launch of the 0% May-22 CTZ in May. The MEF has confirmed that no further CTZ auctions will take place. Looking at previous auctions of CTZs as a guide, we have only seen one bid-to-cover below 1.4x in the past two years with the Jan/Feb auctions seeing bid-to-covers of 1.46x and 1.66x respectively.
• 0.40% May-30 BTPei: The 10-year BTPei will be sold via auction for the first time since September when E750mln nominal was sold with a bid-to-cover of 1.70x. E0.75-1.25bln will be on offer. This will be the third supply event for BTPeis of 2021 following the 0.65% May-26 BTPei auction in January (E1bln sold with a bid-to-cover of 1.65x) and the 0.15% May-51 BTPei syndication in February (E4bln sold from books of E16.8bln).