Interest-bearing postal bond and 10-year BTP: attractive yields

The 10-year BTP has come to nearly make the 4.2% so one wonders whether or not to put it back in the wallet. Poste Italiane, on the other hand, has launched a new postal interest-bearing voucher that lasts only 6 years and offers a higher return than in the past.

If you have a small sum aside, it is better not to leave it on your checking account. The reason is that it will not increase. Indeed, it will decrease due to inflation. Liquidity on current accounts in October touched 1,700 billion euros according to ABI data and the trend is that it will grow further given the future situation of uncertainty.

Choosing to leave your money parked does not reward your investment portfolio. There is, in fact, a hidden tax that erodes the fixed assets on the account which is called inflation. Investing, therefore, is the only way to prevent your savings from losing value over time.

10-year BTP or postal interest-bearing voucher

It is the policies of the European Central Bank and all the increases to the rates decided in recent months that have led to an increase in BTP yields, including the 10-year yield, up to 4.2%. This trend encourages to invest again in Treasury bills. However, we must be careful and carefully consider all the variables.

From a trading perspective, he explains Michele De Michelis Investment Manager of Frame Asset Management, BTPs are interesting. Political uncertainty, however, he adds, raises the spread which is the yield differential between ten-year Bunds and BTPs. In the event that the spread continues to rise together with the yields of securities such as BTPs, the price of the latter has a negative impact.

It is even higher if the duration is long. Therefore, we must always be cautious and evaluate all available alternatives.

And who doesn’t want to risk it?

BTPs are subject to market volatility while the postal interest-bearing voucher no. It offers, in fact, a certain return over time and gives the possibility to request a refund of the money invested at any time. Before a certain period, however, you are only entitled to a refund of the invested capital.

For medium-term investments, you can focus on the new tool launched by Poste. This is the bfp Rinnova dedicated, however, only to those who have refunded an expired security starting from 20 September and within the period of placement of the Renewal voucher.
The new postal interest-bearing voucher is ideal for anyone who wants to reinvest their savings up to six years with the possibility of requesting reimbursement when you want and also the recognition of interest but only after the first 3 years. THE

the actual gross annual return will be 1% at the end of the third year and 2.25% after 6 years. The subscription, we repeat, can only take place if an expired security has been reimbursed except for those for minors and the 4 Years Simple Savings. Even if you won’t have the ability to buy something important, investing in postal interest-bearing coupons like this will at least give you the certainty that your money won’t lose value.
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About Eric Wilson

The variety offered by video games never ceases to amaze him. He loves OutRun's drifting as well as the contemplative walks of Dear Esther. Immersing himself in other worlds is an incomparable feeling for him: he understood it by playing for the first time in Shenmue.

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