Italy EUR

Italy 6-Month BOT Auction

Impact:
Low

Latest Release:

Date:
Actual:
1.95%
Forecast:
Previous/Revision:
1.981%
Period:

Next Release:

Date:
Period:
What Does It Measure?
The Italy 6-Month BOT Auction measures the government’s ability to borrow funds through the issuance of six-month Treasury bonds, assessing investor confidence and interest in short-term debt instruments. This auction focuses on liquidity, cost of borrowing, and the government’s fiscal health, with key indicators being the yield on the bonds and the bid-to-cover ratio, which signals demand.
Frequency
The auction is conducted semi-annually, with results typically released on a designated day of the month, usually every six months.
Why Do Traders Care?
Traders pay close attention to this event as it affects the pricing of Italian government debt and can influence market sentiment regarding Italy’s fiscal stability. Changes in auction results, such as higher yields or lower bid-to-cover ratios, often signal economic concerns, impacting the euro and broader financial markets.
What Is It Derived From?
The auction's results are derived from competitive and non-competitive bids placed by investors, including banks, institutional investors, and individuals. The final yield represents the interest rate that the Italian government must pay to borrow funds, while the bid-to-cover ratio is calculated by dividing total bids by the amount of debt available, reflecting investor appetite.
Description
The 6-Month BOT Auction is a crucial financial event for Italy, providing insights into the government's cost of borrowing and market confidence. Preliminary results indicate immediate investor responses, while final results offer a clearer picture of auction success, though market reactions may vary, as interim figures are seen as more timely.
Additional Notes
This event is a leading economic indicator as it provides early signals of government financing conditions and can influence broader economic trends in Italy and similar reports from other nations in the eurozone. By assessing demand for government debt, it can reflect investor sentiment towards Italy’s economic outlook and fiscal policies.
Bullish or Bearish for Currency and Stocks
Higher than expected demand, indicated by a strong bid-to-cover ratio and lower yields, is typically bullish for the euro, as it suggests confidence in the Italian economy, while positively impacting stocks due to lower borrowing costs for companies. Conversely, lower demand or rising yields would be seen as bearish for the euro and stocks, indicating potential economic instability.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number Better than forecast for the currency (or previous revise better)
Red Number Worse than forecast for the currency (or previous revise better)
Hawkish Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish Favors lower rates to boost growth, weakening the currency but lifting stocks.
Date Time Actual Forecast Previous Surprise
1.95%
1.981%
1.981%
2.069%
2.069%
2.268%
2.268%
2.448%
2.448%
2.536%
2.536%
2.724%
2.724%
3.003%
3.003%
3.112%
3.112%
3.247%
3.247%
3.548%
3.548%
3.724%
3.724%
3.648%
3.648%
3.661%
3.661%
3.765%
3.765%
3.769%
3.769%
3.77%
3.77%
3.859%
 
 
3.859%
3.976%
3.976%
3.997%
3.997%
3.829%
3.829%
3.815%
3.815%
3.686%
3.637%
3.528%
3.528%
3.329%
3.329%
3.076%
3.076%
3.05%
3.05%
2.822%
2.822%
2.324%
2.324%
2.049%
2.049%
1.978%
1.978%
0.81%
0.81%
0.628%
0.628%
-0.088%
-0.088%
-0.308%
-0.308%
-0.488%
-0.488%
-0.48%
-0.48%
-0.49%
-0.49%
-0.563%
-0.563%
-0.55%
-0.55%
-0.545%
-0.545%
-0.519%
-0.519%
-0.524%
-0.524%
-0.521%
-0.521%
-0.504%
-0.504%
-0.481%
-0.481%
-0.486%
-0.486%
-0.429%
-0.429%
-0.448%
-0.448%
-0.52%
-0.52%
-0.518%
-0.518%
-0.478%
-0.478%
-0.392%
-0.392%
-0.33%
-0.33%
-0.276%
-0.276%
-0.224%
-0.224%
0.012%
0.012%
0.227%
0.227%
0.055%
0.055%
-0.287%
-0.287%
-0.355%
-0.355%
-0.221%
-0.221%
-0.215%
-0.215%
-0.213%
-0.213%
-0.224%
-0.224%
-0.217%
-0.217%
-0.21%
-0.21%
-0.063%
-0.063%
-0.048%
-0.048%
-0.028%
-0.028%
-0.062%
-0.062%
-0.007%
-0.007%
-0.025%
-0.025%
0.215%
0.215%
0.163%
0.163%
0.159%
0.159%
0.206%
0.206%
0.438%
0.438%
0.066%
0.066%
0.092%
0.092%
1.213%
1.213%
-0.421%
-0.421%
-0.43%
-0.43%
-0.403%
-0.403%
-0.417%
-0.417%
-0.456%
-0.456%
-0.436%
-0.436%
-0.4%
-0.4%
-0.382%
-0.382%
-0.356%
-0.356%
-0.362%
-0.362%
-0.372%
-0.372%
-0.358%
-0.358%
-0.326%
-0.326%
-0.294%
-0.294%
-0.294%
-0.294%
-0.286%
-0.286%
-0.317%
-0.317%
-0.199%
-0.199%
-0.295%
-0.295%
-0.257%
-0.257%
-0.236%
-0.236%
-0.185%
-0.185%
-0.15%
-0.15%
-0.262%
-0.262%
-0.172%
-0.172%
-0.05%
-0.05%
-0.042%
-0.042%
-0.08%
-0.08%
-0.038%
-0.038%
-0.112%
-0.112%
-0.055%
-0.055%
0.023%
0.023%
0.007%
0.007%
0.007%
0.07%
0.06%