ROME- Italy received over 18 billion euros ($20 billion) of demand for a new syndicated 10-year inflation-linked bond on Wednesday, according to a lead manager memo seen by Reuters.
The Italian Treasury set the yield of the BTPei due in May 2033 at 34 basis points (bps) over the outstanding May 2030 note.
A new long-term syndicated bond was expected this week as Rome seeks to take advantage of positive market sentiment after the re-election of Sergio Mattarella as head of state removed the risk of a snap parliamentary election, four market sources said on Monday.
Financial markets reacted positively to Mattarella's re-election, which will see Mario Draghi, who had made clear he hoped to become president himself, continuing as prime minister instead.
Books are scheduled to close at 1200 CET with the pricing expected later on Wednesday.
The Treasury on Tuesday hired BofA Securities Europe, Citibank Europe, HSBC Continental Europe, Societe Generale and Unicredit to manage the sale.
In early January Italy raised 7 billion euros from a new 30-year BTP bond, receiving more than 55 billion euros in orders, in the first major euro zone debt sale of the year.
($1 = 0.8851 euros)
(Reporting by Stefano Bernabei in Rome and Yoruk Bahceli, writing by Giulia Segreti, editing by Cristina Carlevaro, William Maclean) ((Giulia.Segreti@tr.com; +39.06.80307714;))
