Italy sells EUR 6.5bln vs exp. EUR 5.75-6.5bln 3.15% 2031, 4.00% 2036 BTP and EUR 2bln vs. EUR 1.5-2bln 1.773% 2034, 1.645% 2035 CCTeu

• 3.15% 2031: b/c 1.72x (prev. 1.59x), average yield 3.44% (prv. 3.39%)
• 4.00% 2035: b.c 1.62x, averge yield 4.10%
• 2034 CCTeu: b/c 2.00x, real yield 3.14%
• 2035 CCTeu: b/c 1.99x, real yield 3.20%

A top-of-range takedown at the maximum EUR 6.5bln on the BTPs, with cover ratios improving on the 2031 line against its prior outing, reads as a comfortably absorbed supply event rather than a concession-driven one. The pattern at Italian auctions of this size has been that domestic banks and real-money accounts absorb the belly of the curve when spreads to Bunds are at the tighter end of their range, and decent cover alongside yields only modestly above the previous auction fits that template. The split worth noting is between the fixed-rate BTPs and the CCTeu floaters: the inflation-linked floating lines priced off real yields, so demand there is a cleaner read on inflation hedging appetite than on outright duration demand. The average yield stepping up on the reopened 2031 versus its prior auction is consistent with the broader backup in core rates rather than anything Italy-specific. The follow-ons of note are the secondary market reaction in the BTP-Bund spread and whether cover holds at the next longer-dated supply, which is the more demanding test of appetite for Italian duration. As auction results go, this is the routine variety: size at the top of range and cover above one and a half times has historically signalled a well-cleared market, not stress.