The BTP Value continues to tempt Italian savers: this is what emerges from the outcome of the first day of placement of the third edition of the government bond aimed exclusively at retail investors and small savers.
The boom in orders on this first day confirms how BTP Valore has beaten itself, collecting requests worth 6.44 billion euros, against almost 211,000 contracts signed.
The figure is much higher than that of the first day of placement of the two previous editions of the BTP Value.
Today, another indiscretion also emerged, later confirmed by the content of the new PNRR decree approved by the Council of Ministers:
the exclusion of government bonds from the ISEE calculation – which was decided by the Meloni government with the budget law drawn up for 2024 – it does not apply to those who will benefit from the inclusion allowance and the allowance for training and work support.
Meanwhile, Meloni arrives from the government the first triumphant comments on the outcome of the first day of placement of the third BTP Valore, now also renamed Patriotic BTP or sovereignist BTPwhose birth, which took place in 2023, had been anticipated at the end of 2022 by several rumors about the imminent launch of a sort of autarkic BTP.
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BTP Valore, 3rd act of Meloni: orders boom for 6.4 billion on the first day
Let’s come to results of the first day of placement of the third BTP Valore, the first issued in 2024.
The boom in orders, precisely equal to 6.44 billion euros, beat the result of the first day of placement of the first BTP Valore, the one launched for the first time last year, on 5 June 2023: on that day the value of the subscriptions amounted to 5.432 billionfor a total of more than 185,000 contracts.
From the outset, it should be remembered, the BTP Valore beat the BTP Italia, confirming the fever of retail investors. Fever which would have translated, at the end of the issue, into overall orders for 18 billion euros.
The first day of placement of the second issue of the BTP Valuematch on 2 October 2023 to end on 6 October, had ended instead with orders for a value of over 4.768 billion, against more than 162,000 contracts signed.
The first day of placement of this third BTP Valore consequently ended with orders and contracts that beat those relating to the first days of placement of the two previous issues.
Before singing victory, the Meloni government will obviously have to wait for the outcome of the following days of the placementwhich will officially end next Friday 1 March at 1pm, unless it closes early.
Having said that, the boom in orders for the new BTP Valore was visible from the first hour of the issue, match today.
Gabriel Debach, market analyst at eToro, explained the success of this state title designed by the Italian government to implement the plan announced by Prime Minister Giorgia Meloni herself – well summarized in the slogan “More government bonds in the hands of Italians” – with these words:
“The BTP Valore, in the third round, has made some strategic changes to attract investors. Despite the drop in yield compared to the October BTP Valore, the current offer stands out for its longer duration, presenting a yield of 3.25% for the first three years and 4% for the following three years”.
Debach pointed out that the duration has increased and the “loyalty bonus” has increasednow at 0.7% (compared to the previous 0.5%), with the overall yield estimated at 3.75%, figure higher than 3.45% of the six-year BTP currently in circulation”.
The eToro market analyst explained the boom in orders, obviously, also with the “prospect of an imminent rate cut by the ECB” by Christine Lagarde.
In his opinion, combined with “uncertainty in the financial markets”, this factor it could in fact “push Italians to consider the BTP Valore as an interesting choice”.
To be precise, “awareness of the current high levels for many market indices, together with the lesson learned on the importance of not leaving money idle, could incentivize greater participation in this issue.”
Is exactly “this potential greater demand from Italians could be welcomed positively by the government, indicating a commitment to involving the population in the national debt and reducing dependence on foreign influences.”
Debach concluded by noting that “the rate of 3.75% aligns with gross returns” of those of the BTP issues launched between “2022 and 2023, which went from 1.71% to 3.76%”.
Returning to the new BTP Valore, it should be remembered that this third issue of the government bond aimed exclusively at the audience of small savers presents minimum guaranteed rates equal to 3.25% for the first three years and 4% for the fourth, fifth and sixth years.
The state title has a duration of six years, compared to the four years of the first edition of the BTP Valore and the five years of the second.
The final extra premium is equal to 0.7% of the invested capital and the nominal coupons are paid every three months.
The ISIN code of this third BTP Value, it should be remembered, it is IT0005583478, as announced by the Italian Treasury.
Meanwhile Giorgia Meloni’s Fratelli d’Italia party rejoices.
So today the group leader of FdI in the Chamber of Deputies, Tommaso Foti:
“The confidence of Italians in the national economy is confirmed by the success of subscriptions for the BTP Valore which have reached the one billion mark. In this way the tendency of citizens and businesses to invest in Italy is confirmed and this above all thanks to the prudent and coherent economic policies of the Meloni government which is carrying out a series of essential reforms, starting from the fiscal one to arrive at the full implementation of the Pnrr”.
“In this way – continues Foti – Italy is finally able to regain control of its public debt as always hoped for by the Brothers of Italy, for the creation of concrete financial sovereignty. The good work of the centre-right in government disavows those who hoped for an Italian economy in ruins and condemned by the Spread”.