The Treasury places 7.5 billion BoT: yields at the lowest since 2022
The Treasury successfully concluded the latest annual BoT auction, placing 7.5 billion euros on the market. Demand for Treasury bills was robust, with overall demand at 11.52 billion, marking a coverage ratio of 1.54. Yields, however, are falling: the average weighted yield now stands at 2.859%, marking a drop of three points compared to the September 11 auction. It is the lowest level recorded since December 2022, confirming a downward trend in interest rates in a context of moderate stability for Italian government bonds.
The total BoT currently in circulation thus reaches 128.4 billion euros, a figure that underlines the centrality of this instrument in the country’s short-term financing. Solid demand and falling yields highlight the attractiveness that BoTs remain for investors, at a time when the Eurozone is closely following the evolution of the European Central Bank’s monetary policy.
Waiting for US inflation data
Meanwhile, today’s market session saw little movement on Eurozone government bonds, awaiting the publication of the minutes of the latest ECB meeting, in which the details of the euro area’s monetary policy will be discussed. However, operators do not expect significant innovations capable of impacting the market.
In fact, attention remains focused on the United States, where September inflation statistics will be released today. These data are fundamental for outlining the next moves of the Federal Reserve: any inflationary pressures could lead the American central bank to maintain a restrictive orientation, also indirectly influencing the choices of the ECB. A stabilization of inflation, on the contrary, could strengthen expectations of a slowdown in rate growth, a scenario that could also offer respite to operators of the Eurozone.
The positive result of the BoT auction demonstrates investor confidence in Italian securities, with a drop in yields which could represent a sign of stability for the coming months. In any case, American monetary policies and inflation reactions continue to influence the global context and influence the European market, underlining how closely the destinies of the two sides of the Atlantic are now closely connected.
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