Italian Treasury auctions €7bn of BTPs, yields drop amid strong demand

On June 25‑26 the Italian Treasury placed nearly €11 billion of sovereign debt on the market, including €7 billion of BTPs across three tranches, €2 billion of CCTEu bonds and around €2 billion of short‑term BOTs. Demand was robust, with coverage ratios ranging from 1.59 to 1.89 for the BTP issues. Yields fell, with the five‑year BTP at 3.03% (down 13 basis points) and the ten‑year BTP at 3.63% (down 15 basis points). The CCTEu was issued at a gross yield of 3.25% and is linked to the six‑month Euribor plus a 0.8% spread. The BOTs were offered without coupons, totaling €5.95 billion, and attracted strong investor interest.

The auctions confirm continued market confidence in Italy’s sovereign debt despite broader Eurozone inflation and monetary‑policy uncertainty, and they set reference pricing for Italian government securities in the months ahead.