The buyback operation of BTPs by the Treasury, scheduled for tomorrow, could reach up to 5 billion. The maneuver involves five different types of bonds, with maturities of five, ten, and fifteen years. These are BTPs that will mature next year between February and August.
THE OPERATION
The buyback will be conducted through a competitive auction, reserved for so-called Specialists, i.e., financial intermediaries with specific obligations to subscribe to public debt in exchange for certain privileges, such as the exclusive possibility to participate in supplementary placements.
The operation is the first since July of last year. In 2024, the Treasury had repurchased bonds for about 4 billion. Among these, 1.2 billion of the BTP Italia maturing next May 26, on the eve of the new issue – the twentieth – of the bond linked to Italian inflation and mainly intended for small savers and the retail market, to which the first three of the four placement days starting Tuesday 27 are exclusively dedicated.
THE YIELD
The main objective of the buybacks is to manage public debt, allowing the Treasury to extinguish part of it at a lower cost than the nominal value, reducing the overall amount and adjusting the average life of the stock, which as of April 30 was 7.01 years, while the total of government bonds in circulation was 2,573 billion euros.
Meanwhile, yesterday the spread between the BTP and the German Bund closed lower, moving to 108 points, with the ten-year yield falling to 3.60%.
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