Introduction sectionInvesting in Government Securities
Investing in Government Securities
Investors can purchase Government bonds both at auction, that is at issuance, and on the secondary market, where they are traded daily. In both cases they must turn to a bank or a qualified financial intermediary.
Subscription at auction
Investors purchasing at auction have the advantage of not paying fees for all Government bonds except BOTs, which however have maximum fees set by decree.
Investors must book the desired amount, for a minimum denomination of 1,000 euros, at least one day before the auction date. This website publishes the auction calendar and the press releases containing all the useful information regarding bonds being issued and the auction results.
All citizens can easily access the information.
Purchase on the secondary market
Investors can buy outstanding Government bonds on the secondary market. In this case, banks and other financial intermediaries can apply fees, which they must indicate clearly. Investors may moreover negotiate them.
The secondary market guarantees the liquidity of Government bonds, that is the possibility for investors to sell bonds before redemption at market prices.
Borsa Italiana S.p.A. manages the MOT (Government Bond and Securities Electronic Market). This is the secondary market where citizens, through their financial intermediary, can buy or sell Government bonds and other securities. In this case too, the minimum denomination is 1,000 euros.
Useful information about the financial features of Government bonds is also available in the Forum P.A..