If anyone thought that the BTP-day might serve some, today was denied. The Treasury has now placed about 8 billion euros, several auctions, the highest interest rates of the euro. The most important was that of the new bonds with a maturity of 3 years, offered between 2.5 and 3.5 billion euros. It was placed at 7.89 percent. But it was also important to test the seventh installment of the year BTPs, with an offer of between 1.5 billion and 2.5 billion euros, and decades of the thirteenth 2020, no longer being issued. The spread, ie the yield differential, between the German Bund and BTP is back above 510 basis points and altitude, although the auctions have had a good question, the rates have not fallen. On the contrary.
Investors did not change attitudes about Italy. Hence they continue to yield increasingly higher demands on Italian government bonds, touching new highs. The new BTPs maturing in 2014 were placed with an interest rate of 7.89% and recorded a bid to cover 1, 5. It is the highest since the euro. The ten-year tranche was placed seventh for the maximum available in a bid to cover of 1.33 and a rate of 7.56%, breaking another record from the birth of the euro.
The yield on Italian government bonds is immediately shot upward from the opening of trading. The interest rate on the secondary market of securities two years was well above the 7.2%, while that in five years was fixed above 7.6 percent share. The ten-year BTP, however, has not fallen below the yield of 7.3% for most of the morning. The consequence of this tension is reflected on the spread, or the yield spread between Italian and German government bond, historic benchmark of financial strength in the eurozone. The spread opened to 497 basis points, then tap the up to day close of the auction of the Treasury, when he reached 511 points.
Although banks and brokers have said with great satisfaction the BTP-day yesterday, the result of today’s employment showed the effectiveness of operations like these. Not only the spread between the Bund and BTP has not decreased, but the dynamics of the yield curve of the Italian titles on primary and secondary market has shown itself entirely independent of the retail purchases.
Compounding the perception of operators have been on all three factors. On the night came the notice that the rating agency Moody’s has placed under review for possible downgrade the ratings of 87 banks in 15 European countries. Among these, 17 are Italian. The growing uncertainty about the macroeconomic and financial control over the next few months was the driver who is doing bad investors lose their cool against Italy. The last bank to reduce its exposure to Rome was the Japanese Nomura, who yesterday claimed to have reduced by 83% Italian assets in the portfolio, from 2.81 billion to $ 467 million.
The second reason that has impacted on Italian government bonds at auction, as they explain several traders, was the rumor on the downgrade of the AAA rating of France. According to the French newspaper La Tribune, “within ten days of Standard & Poor’s put under observation on the proceedings France.” The S & P spokesman did not comment on the rumor, but has toured the operating rooms. Granted, the French could get downgraded in the first quarter of 2012, affecting significantly trans election that will see the confirmation or otherwise of President Nicolas Sarkozy. All this without forgetting that the small rating agency Egan-Jones has cut the rating on Italy yesterday, bringing it from BB + to BB.
Finally, to depress the mood of investors have also branched data by the Organization for Economic Cooperation and Development (OECD). The organization has warned Paris on European economic growth, given steadily deteriorating in 2012. For Italy, the scenario will be a recession, a factor which will be an obstacle for the government of Mario Monti, committed to fiscal consolidation program to avoid the scenario greek. With 440 billion euros of debt to be refinanced in 2012 and with these rates, it is increasingly difficult for Roma to reach all the goals without help.
Translation from italian version by Google Traslate
