Performance BTP 2040

The new BTP 2040 has conquered the stage for government bonds with a performance by star. Especially applauded by those institutional investors such as insurance companies, mutual funds and funds pension in Italy and in Europe who take positions with very long maturities.

The new thirty-year Treasury, which expires on first settembre 2040, has been placed for a final total of 6 billion, the upper limit of the range indicated by 4-6 miliardi Via Venti Settembre top placement. The coupon of this BTP is fixed extra-long, 5%, but performance was calibrated relative to the "old" BTP 2039: 2040 that offered a gross yield of 6 hundredths of a percentage point above the thirty year already on the market and thus has resulted in area 5.20 percent. The risk-Italy then like: the Italian state has borrowed 6 billion euros, with repayment in 2040, managing to pay an interest rate of about 107 hundredths of a percent (1.07%) above the bond yield German State of the same maturity: This "spread" is not high compared to 170 cents recorded in the peak of the crisis of confidence in the markets and the ten-year maturities.

The Treasury, with this title thirty years, confirms the commitment to extend as long as possible (no overpay) the average life of debt: Every year, in fact expire mountains of government bonds and the distribution of maturities over a long period of time will be a trump card in Euroland in the coming years, in a market for government bonds in euro blocked plans by the refinancing of costly public anti-crisis put in place between 2007 and 2009, mainly from Germany, France and Holland.

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