(Finance) – Il treasure In the third quarter 2024 will offer Short Term BTPs (maturity 08/28/2026) for at least 9 billion euros, 5-year BTPs (maturity 01/10/2029) for at least 10 billion euros and 10-year BTPs (maturity 02/01/2035) for at least 10 billion euros, as disclosed in the issuance program of the Ministry of Economy and Finance (MEF).
The minimum amount refers to the value that the outstanding amount of the security must necessarily reach before being replaced by a new issue on the same maturity. During the third quarter, they may also be issued additional new titles based on market conditions financial.
Reopenings of outstanding securities
In the third quarter of 2024, they may be offered further tranches of the following securities currently being issued: BTP entitlement/maturity date 17/06/2024 – 15/07/2027 and coupon 3.45%, BTP entitlement/maturity date 01/03/2024 – 01/07/2029 and coupon 3.35% BTP entitlement date /maturity 15/05/2024 – 15/07/2031 and coupon 3.45% BTP enjoyment date/maturity 01/03/2024 – 01/07/2034 and coupon 3.85%.
Furthermore, in relation to market conditions, the MEF reserves the right to offer further tranches of nominal securities being issued with a maturity exceeding 10 years, CCTeu and indexed to inflation also in order to take into account any dislocation on the secondary market of said securities. Finally, the MEF will be able to offer further tranches of medium and long-term securities, nominal – at fixed and variable rates (CCTeu) – and indexed to inflation, no longer being issued, to ensure the efficiency of the secondary market.
Trend of issuing activity
TO end of May 2024, the MEF issued medium-long term government bonds for a total nominal amount of approximately 186 billion euros. The funding activity, for the same period, in addition to covering the needs of the State Sector, made it possible to refinance maturing medium-long term government bonds, including the amounts repurchased in exchange and buyback operations, for a total amount equal to approximately 130 billion euros. For the rest of the yearfrom 1 June to 31 December, the funding activity will have to take into account the maturities of medium-long term government bonds for a total amount of 139 billion euros, to which the share of the capital requirement must be added State sector of the same period.
Taking into account the current cash availability, the issues carried out in the month of June and those already announced which settle by 30 June, equal to approximately 27 billion euros, compared to the end-of-year objectives, for the remaining part of 2024, from 1st July to 31st December, are therefore estimated gross emissions of medium-long term securities in the area of 135-155 billion euros. Given the deadlines, this implies an estimate of net emissions for approximately -4/+16 billion euros in the same period.
At the end of May 2024, therefore, it progress of the program of issuance for the current year stood at over 50%, a percentage that rises to 61% if we include the issues carried out and those already announced that regulate in the month of June.
There average life of the debt as of 31 May it was equal to 7.03 years, a slight increase compared to 31 December 2023 (6.97 years). The average cost at issue until the end of May 2024 it was equal to 3.59% (against 3.76% on 31 December 2023).