After a few hours, the books for the launch of the new ten-year benchmark BTP (expiring on 1 December 2031) closed after a few hours with requests for over 60 billion, which the Treasury had announced on Monday giving the mandate for the syndicated placement to a pool of banks formed by Bnp Paribas , Cr’dit Agricole, Goldman Sachs, Hsbc and Intesa Sanpaolo. the placement concerned an amount of 10 billion euros, with a yield reduced to six basis points on the current benchmark in August 2031, compared to the first data which indicated a spread close to 10 points, for a reoffer price of 99.923 points and a return 0.96%. Of the more than 65 billion in demand, 4.55 billion is attributable to joint lead manager banks.
Today begins a two days with the offer of government bonds for over 15 billion euros. It starts with the annual BOT auction for 7.5 billion with settlement on June 14, while tomorrow medium and long-term securities will be offered for a maximum of € 7.75 billion, with settlement on June 15. In detail, the seventh tranche of the 3-year BTp maturing April 15, 2024 will be offered for an amount between 3 and 3.5 billion, the third tranche of the 7-year BTp maturing 15 July 2028 for an amount between 2 and 2.5 billion euros and the fourth tranche of the 20-year BTp maturing on 1 March 2041 for an amount between 1.25 and 1.75 billion. Considering also the ten-year BTP, the Treasury in three days will raise more than 25 billion euros. On the secondary market for government bonds yesterday, the spread between BTP and Bund closed down. The yield differential between the benchmark ten-year BTp and the same German maturity is indicated at 109 basis points, two less than yesterday’s closing value.
The yield of the BTp also falls ten-year benchmark which stood at 0.87%, down from 0.93% on the eve of the year. Meanwhile, Germany yesterday sold only part of the offered amount of 4 billion at the auction of federal Bund bonds with a maturity of seven years. Against offers of 4.057 billion, securities for 3.259 billion were sold, with a return that was still negative, but which rose to minus 0.37% from minus 0.41% in the previous auction. The Finance Agency withheld 741 million euros for market-tending purposes, bringing the total size of the issue to 4 billion. Finally, on the corporate bond front, there was also a huge demand for Enel bonds in three tranches (six, nine and fifteen years). With emissions of three billion, orders more than tripled, exceeding 10.4 billion. in detail, the one billion tranche expiring in 2027 collected orders for over 3.1 billion: the yield spread recognized to subscribers will be 38 basis points above the midswap rate (65 bp the initial guidance). The tranche to 2030 of 1.25 billion has collected requests for over 3.6 billion: it expects a return of 50 basis points (80 guidance) above the reference midswap. The tranche with the longest maturity, 2036, for one billion euros and has collected applications for over 3.7 billion: the yield of 65 basis points above the midswap (100 the initial indication). The following baches were therefore committed to the Enel transaction: Banca Akros, Bbva, Bnp Paribas, Credit Agricole, CaixaBank, Deutsche Bank, Goldman Sachs, Intesa Sanpaolo, Ing, JpMorgan, Mediobanca, Natixis, Santander, Societe Generale and Unicredit.