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Italy Pushes Retail Bonds, Eyeing Inflation An ...

By Sara Rossi and Valentina Consiglio
ROME, Feb 10 (Reuters) - The Italian Treasury is moving quickly this year to issue retail bonds, hoping to plug a gap soon to be left by the European Central Bank and anticipating strong appetite from savers whose deposits are being eroded by inflation.
https://evigetir.com/img/garden.png The economy ministry said on Monday it would issue a new "BTP Italia" inflation-linked bond for retail investors from March 6-9, earlier than the traditional April-May period chosen over the last decade.
It has said it is also considering other instruments dedicated to domestic savers, as part of a strategy to put more of its huge public debt - proportionally the second highest in the euro zone - in Italian hands.
"We want to reduce our dependence on foreign creditors by increasing the number of Italians and Italian residents that hold our public debt," Prime Minister Giorgia Meloni said on Thursday.
Retail investors held about 9% of Italian public debt at the end of last year, EvdEn evE NAkLiyAt according to Bank of Italy data.
Analysts say Rome is probably also capitalising on favourable market conditions as three similar BTP Italia bonds mature in April, evdEN Eve nAkLiYaT May, and eVDeN EVe NakLiyAt November for a total of nearly 25 billion euros ($26.87 billion).
The yield on Italy's benchmark 10-year BTP bond stood at around 4.20% on Friday, compared with 4. If you liked this article therefore you would like to collect more info concerning EvdeN Eve NakLiyAT generously visit our page. 70% at the end of December.
The Treasury has not issued three BTP Italia retail bonds in a year since the instrument was introduced in 2012 at the height of the euro zone debt crisis.
The importance of retail investors in purchasing BTPs will grow as the ECB withdraws its support.
The central bank last year ended its "quantitative easing" and EVDEN eVE nAkLiyaT emergency pandemic bond purchasing programme.

It is continuing to reinvest part of the bonds it bought as they mature, while reducing its balance sheet.