Italy's Treasury Focuses on Retail Savings with BTP Bonds in 2026

The Italian Treasury is set to continue its focus on retail investors in 2026, utilizing established instruments like BTP Italia and BTP Valore while maintaining flexibility in maturities and coupons to attract small investors.

BTP Valore: New Issues on the Horizon

Following two issuances in 2025 totaling approximately €31.5 billion, the BTP Valore family is preparing for new issuances in 2026. The Treasury will assess issuance opportunities based on market conditions, retaining flexibility on maturities and coupon types. Final bonuses reserved for retail investors will remain a feature.

The option for early capital redemption, introduced with BTP Più in 2025, will remain available. Each new issuance will have a distinctive name to differentiate itself in the market.

Before diving into the specifics, let's review the recent BTP Valore issuances:

BTP Italia: Indexation to National Inflation Rate

The BTP Italia, with approximately €6.45 billion in bonds maturing in 2026, may see new issuances. These bonds will maintain indexation to the national inflation rate and a final bonus for those who purchase at issuance and hold them until maturity. As in previous years, the Treasury may use buyback and exchange operations to ensure liquidity and efficiency in the secondary market for BTP Italia.

Ensuring Liquidity and Efficiency

The Treasury will ensure liquidity and efficiency in the secondary market for BTP Italia by potentially using buyback and exchange operations.

Here are some key features of BTP Italia bonds:

Long-Term BTPs: Focus on 15 and 30-Year Maturities

For 50-year BTPs, the Treasury reserves the right to reopen existing bonds through ordinary auctions or placement syndicates, should market conditions be favorable. Recent long-term issuances include the BTP March 2072, issued via syndicate in 2021, and the BTP March 2047, the first 50-year issuance by the Italian Republic, launched in 2017. Gross issuances on the long term for 2026 are projected to be in line with 2025, focusing on 15 and 30-year maturities for approximately €31.6 billion, with estimates of negative net issuances.

Placement on MOT: Borsa Italiana's Electronic Market

All retail BTPs, both BTP Italia and BTP Valore, will be placed directly on the MOT, the electronic market regulated by Borsa Italiana dedicated to retail investors, with the support of selected dealer banks. Unlike BTP Italia, the BTP Valore family does not have a placement phase for institutional investors, being exclusively reserved for small savers.

To recap, here's a comparison of BTP Italia and BTP Valore:

Debt Management in 2026

The “Guidelines for Public Debt Management 2026,” published by the Department of the Treasury of the Mef, outline a clear framework: the Treasury will maintain flexibility on maturities, coupons, and final bonuses, confirming the goal of making government bonds accessible and attractive to small investors.

Flexibility in Debt Management

The Treasury will maintain flexibility on various aspects to optimize debt management.

Issuance Volumes and Strategies

Let's delve deeper into the planned issuance volumes and strategies for long-term BTPs.

Key Takeaways for Investors

Here are some key points for investors to consider regarding the Italian Treasury's plans for 2026:

• Continued focus on retail investors with BTP Italia and BTP Valore.
• Flexibility in maturities, coupons, and bonuses to adapt to market conditions.
• Placement on the MOT electronic market for easy access.

Understanding the MOT Platform

The MOT platform plays a crucial role in ensuring accessibility for retail investors.

Retail Focus Confirmed

The Italian Treasury's strategy for 2026 underscores its commitment to engaging retail investors in the public debt market, leveraging familiar and successful bond products.

In summary, the key objectives are to: