For some reason you could not buy the August 2024 BOT auctioned yesterday by the Treasury? It can happen and that would mean losing theattractive yield of 3.82% that the aforementioned Treasury Bill managed to hesitate. However, it would be a real shame because yields such as those proposed by the 12-month BOT placed yesterday by the MEF will very soon be destined to be just a distant memory.
So what to do if you were able to participate in yesterday’s emissions? Is the only solution really to wait for the next BOT auction which, in any case, won’t be held before August 24th? In reality, nothing is lost because starting today you will be able to buy that BOT that yields 3.83% from those who participated in the auction yesterday by buying from the state. And speaking of participation, demand was very high with total requests for 10.57 billion euros against an amount offered of 8 billion.
BOT August 2024 listed with this ISIN code
The ISIN code to buy the August 2024 BOT on the secondary market of Borsa Italiana
To buy BOTs there are two ways available: the first is that of buying at auction. Practically the saver (who actually operates through an intermediary authorized to participate in the placement) buys directly from the State. The MEF is the counterparty only on the day of the auction and limited to the time of the same.
The second way is to buy from other investors on the electronic bond market organized and managed by Borsa Italiana. In this regard we speak of purchase on the secondary market precisely to differentiate from the purchase at auction or on the primary market.
Well, starting today the BOT that yields 3.8% can be bought on the MOT. As per the regulation, the listing of the August 2024 BOT on the MOT started on 11 August, the day following the auction.
To track the stock (available during usual trading hours) is required refer to ISIN IT0005559817. By entering this code in the search bar of the Borsa Italiana website, you enter the BOT Zc Ag24 A Eur file.
We remind you that since it is a Treasury bill, there is no coupon and that the yield is simply given by the difference between the price at maturity and the purchase price.
In any case, given the same time horizon, it is always good compare BOTs with other investment solutions. If you are looking for a customized solution for your investments you can consider the Moneyfarm asset management (100% Italian company) through which you can protect and increase the value of your capital over time by defining the investment portfolio that is most functional to your objectives (on Moneyfarm website for more information). There are no restrictions with Moneyfarm asset management. In addition, a consultant is always at your disposal.
What are the conditions for buying the August 2024 BOT on the secondary
There are a few rules to keep in mind for buy BOTs on the secondary market. To begin with, you need a securities deposit account with an intermediary (for example, your bank or the post office). Furthermore, the minimum denomination is 1,000 euros (equal to that envisaged for the purchase at auction). Commissions are applied to the purchase which vary according to the intermediary chosen. Furthermore, there is also taxation to consider which, at least for now, remains the facilitated one at 12.5% (even if someone is lobbying to increase it).
Finally, you must keep in mind that you are buying a BOT on the secondary market it doesn’t force you to keep it until August 2024. In reality, it is always possible to sell BOTs before expiry, only that an operation of this type has pros and cons. And here what to do is all to be evaluated.
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2023-08-12 21:29:06
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