never so high since 2012. For Btp the yield rises to 3.77- Corriere.it

The annual Bots could return to interest in institutional portfolios and perhaps even capture the interest of some families, after four years of negative returns. Indeed, the 7 billion euro of government bonds maturing twelve months assigned yesterday at an auction by the Treasury marked sharp increases in yields. In fact, the yield rose to an average of 3.086% (approximately 2.69% net), an increase of 42 basis points compared to the December auction. Marking levels that make us jump back ten years. To find a higher yield, one must go back to July 2012 when the rate on the annual maturity stood at 3.972%. Demand was obviously good, standing at 9.712 billion euros, with a supply-demand ratio of 1.39.

Rate hikes and inflation

The boost comes from the rise in interest rates by central banks around the world and the increase in inflation has also played in favor. Who bought? The protagonists always remain the institutional ones, explains the market. Perhaps not yet the families who probably found the twenty-year BTPs placed on January 10 with a rate of 4.45% more interesting, even if they require a long-term vision. Therefore, if we cannot yet speak of a return of the Bot people, it is also true that for some retail investors this first rise in the Bot can be an opportunity, for example, to place liquidity in view of other investments, for example in the house.

New issue of Btp

But a return to the levels of ten years ago is still not enough for those who have to secure their savings from inflation at 8.1% (the one acquired in 2022). Instead, it serves banks to invest excess liquidity to be kept available for customers at a time when repurchase agreement loans are back in the news, in the wake of the rise in interest rates. Today the new test with the Treasury which has auctioned 3 and 7-year BTPs for a total of 7 billion, with rising yields and sustained demand. In detail, 3.5 billion was assigned, equal to the maximum amount offered of the seventh tranche of the 3-year BTp, expiring on 15-01-2026, against a demand of 5.3 billion, with an increasing yield of 19 basis points at 3.26 per cent. The Treasury has also assigned the maximum amount offered of the fifth tranche of the 7-year BTP, maturing 12-15-2029, equal to 3.5 billion, against a demand of 4.9 billion, with an increasing yield of 16 basis points to 3.77 percent.