Fixed Income Analysis /
Global

Primary Market Focus - We like BTP Apr24 vs. BTPs in the Jan-Aug23 area

    UniCredit
    9 April 2021
    Published byUniCredit
    • On Tuesday, Italy will sell BTP 0% Apr24 for EUR 3.5-4bn, BTP 1.6% Jun26 for EUR 1-1.75bn and BTP 0.95% Mar37 for EUR 1.5-2.0bn. The auction will amount, in total, to EUR 6-7.75bn. This is higher than we expected, especially given that it comes after the issuance of a dual tranche via syndication in which the treasury sold EUR 12bn of the new 50Y benchmark and of BTP 0.25% Mar28.
    • We like BTP 0% Apr24 vs. BTPs in the Jan23-Aug23 area, and we also like it vs. OIS. After the recent steepening of the BTP curve, we like BTP 0.95% Mar37 vs. the 10Y area.