In a crowded market it hits the auction Bot – Milano Finanza

In a crowded market it hits the auction Bot. The Treasury has allocated all the 6.5 billion euro of Bot to one year against a demand which reached 11.12 billion, with a downward rate to new record low. The yield is in fact dropped to -0.14% -0.081% from the auction of April. Rising demand with a past coverage ratio from 1.55 to 1.72.

The back of Italian auction continues tomorrow with BTP and will also include new sull’extra offer long: up to around 7.5 billion on the benchmark 3, 7 and 15 years and on OFF-the -run March 2030. in a market with good volumes, the rate on Italian ten-year benchmark remains just above the 1.50% at the end of the morning, all’1,503%, with the spread BTP / Bund to 137.9 basis points. Weighs certainly the offer factor.

This morning, in fact, Portugal has issued 1.15 billion Ot, above the upper limit of the fork between 750 million and 1 billion euro. This is the first auction to Lisbon after the confirmation of the investment grade rating from the agency DBRS.

The yield stood at 3.252%, up slightly compared to 3.138% in March and demand has remained strong with a bid to cover 1.59, about the same level of the previous auction. Moreover, Germany has issued 3.954 billion, on an indicative offer of 5 billion, the new Schatz 15 June 2018 and Greece has allocated 1.138 billion of 3-month securities.

At the same time Madrid has launched the placement bond of 30 July 2066, with expressions of interest at the end of the morning over the 10 billion euro (including 1.2 billion from the lead manager) and a yield of 250 basis points above the mid-swap rate. Earlier the yield guidance had been given in area 253 basis points above the mid-swap rate.

The syndicate is made up of Barclays, BNP Paribas , CaixaBank, Citi, Santander and Societe Generale . Spain has a sovereign rating of Baa2 by Moody’s, BBB + by Standard & amp; Poor’s and Fitch and A (low) by DBRS, all with a stable outlook. The deal comes at a market that speculates on the possibility of a release similar by Italy, also if last night a Treasury source clarified that no decision has been taken and that the operation is not forthcoming.