The Ministry of Economy and Finance announces that the first BTP Short Term, the new government bond that will replace CTZs, will be offered to the market at the auction scheduled for the 25th of March 2021, together with BTP€is.
As announced in the Guidelines for Public Debt Management 2021, this new category of government bonds, completely aligned to ordinary nominal BTPs, may have a maturity between 18 and 30 months and it will entirely replace CTZ bonds that will be suspended from that auction onwards. Hence, the BTP Short Term, and the reopening auctions, will be offered on the first of the three days of the month-end auctions, together with BTP€is.
With the introduction of this new category of government bonds, the MEF aims at contributing to the efficiency and liquidity of the short-term part of the Italian government bond yield curve and at strengthening the degree of flexibility concerning the management of the debt redemption profile for the next years.
Concerning the CTZs currently in circulation, the MEF will make use, if necessary, of all the available debt management tools to ensure an orderly functioning of their secondary market.