Live Updates > Live Update Details
2026-02-26 18:05:11
[Demand for Italian Long-Term Bonds Remains Robust, 10-Year Yield Falls 12 Basis Points] ⑴ The Italian Treasury completed a new round of bond auctions on Thursday, with a total issuance of €900 million. Market focus was on the significant decline in long-term interest rates and changes in subscription sentiment across different maturities. ⑵ Specifically, the ninth tranche of BTP bonds maturing in February 2031, with an issuance size of €275 million, ultimately attracted €428.8 million in bids, resulting in an oversubscription rate of 1.56. The gross yield for this auction was set at 2.62%, down 12 basis points from the previous issuance of the same maturity. ⑶ The even longer-term seventh tranche of BTP bonds maturing in February 2036, with an issuance of €375 million, attracted €551.3 million in bids, resulting in an oversubscription rate of 1.47. Its gross yield was 3.31%, a significant decrease of 14 basis points compared to the previous issuance, indicating a stronger market willingness to lock in long-term yields. (4) Regarding floating-rate bonds, the fifth tranche of CCTeu maturing in April 2035 was issued for €250 million, with total bids reaching €394 million, resulting in a subscription multiple of 1.58, the highest in this auction. The gross yield for this tranche remained unchanged at 2.71%, consistent with the previous issuance. Overall, the Italian bond auction demonstrated strong market demand, particularly the decline in long-term yields, reflecting further confirmation among investors of their expectations for a turning point in Eurozone interest rates.
