MEF has scheduled an auction of BOTs for 10 December 2009, with settlement on 15 December 2009:
Amount (in euro million)
In the absence of any specific need thereof, there will be no offer of three-month BOTs on 10 December 2009.
It should be noted that on 15 December 2009, € 10,500 million of BOTs will mature (€ 4,000 million three-month and € 6,500 million 12-month BOTs).
BOTs are to be offered at auction using the competitive auction placing system, with dealers' bids being expressed in terms of yield.
Bonds may be subscribed up to a minimum sum of one thousand euros. For each BOT issue, the relevant fiscal price shall be the average weighted price of the first tranche, calculated on the basis of the corresponding average weighted yield.
Expressed in percentages, yields indicated by dealers participating in BOT auctions may, with regard to all types of securities, vary by a 0.001 percentage point or a multiple of that sum. Bids failing to indicate yield shall not be admitted to auction. Each bid shall be of a minimum of one and a half million euros (€1,500,000).
Placing of BOTs shall be carried out with regard to each of the dealers referred in the decree of issuance.
In application of the provisions of Section II, Part V of legislative decree no. 213 of 24 June 1998, and related implementation provisions, in connection with the dematerialisation of state securities, ordinary Treasury bonds are represented by book entries in favour of those entitled thereto. Banca d'Italia automatically enters the BOT amounts subscribed at auction to be settled in the clearing and settlement facility for financial instruments, with the date of settlement being the value date. On the basis of the allocations made, the broker allocatees shall credit the relevant amounts to the subscribers' accounts.
Purchase bids - with a maximum of three - must reach Banca d'Italia strictly by means of the national interbanking network, by and no later than 11.00am on 10 December 2009, in compliance with the procedures established by the issuance decrees. It should be observed that in the event of a system malfunction such that preventing messages being inputted on the network, bids for the auction must be sent by faxing the relevant form.
Bids received beyond the deadline established in the issuance decree shall not be considered. Any bids submitted as a substitute for bids already received shall be taken into consideration only if received within the deadline referred to above. Bids cannot be withdrawn after the deadline referred to above.
In the event that bids by dealers exceed the amount offered, even as a total, by the Treasury, such bids shall be considered starting with that with the lowest yield up to the amount offered, save where the issuance decree provides otherwise.
"State bond specialists" are eligible to participate in the additional placing of twelve-month BOTs scheduled automatically for 11 December 2009.
The amount of the additional tranche is set at a maximum of 10% of the nominal amount offered at the issuance auction. Such a percentage represents the minimum sum offered in the additional placing, which the Treasury reserves the right to increase, following closure of the issuance auction, in order to meet dealers' demands. Should such circumstances arise, a press release will be issued.
Specialists who did not participate in the issuance auction shall not be eligible to participate in the additional placing. Allotment shall take place at the average weighted yield established at the issuance auction. The procedure for additional placing shall be in accordance with the provisions in the issuance decree. In particular, purchase bids shall be received by and no later than 3.30 PM on 11 December 2009.
Outstanding BOTs as at 30 November 2009 amounted to € 156,470,638 million, out of which € 4,000 million on three-month BOTs, 62,348,043 million six-month BOTs and € 90,122,595 million twelve-month BOTs.