Sottoscrizione al contenuto Zero Coupon Bonds (CTZs)

Introduction sectionZero Coupon Bonds (CTZs)

Zero Coupon Bonds (CTZs)

CTZs are bonds issued with maturities of 24 months, subject to reopenings which can reduce their original duration
Remuneration is entirely determined by discount at issuance, which is equal to the difference between the nominal value and the price paid.
Auctions are reserved to institutional intermediaries authorised in accordance with legislative decree no. 58 of 24 February 1998 (see the “Authorized dealers” section).

Main features of CTZs
Currency Euro.
Maturity 24 months.
Remuneration Discount at issuance.
Type of auction Marginal auction with discretional determination of price and quantity issued.1
Auction frequency Monthly together with BTP€is.
Settlement dates T+2 on the primary and secondary markets.
Market conventions Actual /365 for yield calculation.
Redemption At par, single payment at maturity.

1 Since 22 December 2011 a procedure has been introduced by which a minimum and maximum quantity on offer is set for the auction and the auction price is set discretionally as is the quantity within the announced interval.

1. Investing in CTZs

Zero coupon bonds are issued with a maximum maturity of 2 years. CTZs are listed in regulated markets, in particular the electronic Government Bond market (MOT) for limited amounts (lots of 1,000 euros or multiples thereof) and the electronic wholesale market of Government Bonds (MTS) for trades of at least 2.5 million euros.
Thanks to their characteristic of being zero-coupon bonds, CTZs are easy to manage because the financial commitment required for this investment is less than the nominal redemption value and there is no need to reinvest periodical interest flows.
Those wishing to buy a CTZ during an auction must book the quantity requested through an authorised intermediary within the day preceding the auction.
Since they are bonds subject to a dematerialised regime, subscribed CTZ amounts are represented by the accounting entries in favour of the entitled.
Placement fees set for CTZs amount to 0.075% of the capital subscribed and are given to the Treasury by the financial intermediaries at subscription. Consequently, intermediaries must apply only the auction price to buyers, without further fees.


Inizio paginaBack to top


2. Minimum denomination

CTZs can be subscribed for a minimum amount of 1,000 euros or multiples thereof.


Inizio paginaBack to top


3. Auction mechanism

CTZs are discount bonds redeemable at par. Their interest results from the difference between redemption and issue prices.
The issue takes place through a marginal auction with discretional determination of the allocation price and of the quantity issued. There is a mechanism of speculative bid exclusion which is described in detail in every issuance decree. The same decree sets the supplementary auction terms, reserved to specialists in Government Bonds, technically treated as a subsequent tranche. The quota reserved to Specialist is equal to 30% of the amount allocated in the ordinary auction for the first tranche and 15% for further tranches. Only specialists who took part in the last auction have access to this supplementary placement.
The amount of each bid cannot be less than 500,000 euros.
Each of the five bids that can be placed by a single intermediary must indicate the nominal value to subscribe and the corresponding price, with a difference of at least 0.001 euros between each of them.
The Bank of Italy is responsible for the execution of the CTZ auction.
As compensation for the service, the Treasury pays the Bank of Italy a commission of 15 basis points of the total nominal amount subscribed. This commission will be awarded, totally or partially, to operators participating in the auction since these financial intermediaries cannot apply any fees to investors (see the “Government Bond Auctions” section).


Inizio paginaBack to top


4. Maturity

At present CTZs have maturities of 24 months.


Inizio paginaBack to top


5. Auction calendar

Auctions for CTZs take place monthly, together with the BTP€i auction.


Inizio paginaBack to top


6. Auction announcements

The relevant information can be accessed at the pages “CTZ issue Announcements” and “Latest CTZ auction Results” of the Public Debt web site (


Inizio paginaBack to top

Related content