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Medium- and long-term OATs  
BTANs and OATs
BTANs (Treasury notes with annual coupons) are medium-term Treasury securities with a maturity of 2-5 years. OATs are medium- and long-term Treasury bonds with a maturity of 2-50 years.

Like BTFs, BTANs are tradable Treasury securities with initial maturities of 2-5 years. They have a par value of €1 and their settlement is at par value on the maturity date.

For streamlining purposes, as of 1 January 2013, new benchmark medium-term securities (2-year and 5-year maturities) have been issued as OATs, as have long-term securities with 7-year maturities or longer. No more new BTANs will therefore be created. Tap issues will continue for existing BTANs to guarantee their liquidity. At 31 December 2015, BTANs outstanding stood at €102,071 million for four fixed-rate lines and one variable-rate line (BTANi July 2016) maturing on 25 July 2017.

The value of the accrued coupon is calculated on the basis of the exact number of days over the exact number of days (ACT/ACT). Secondary market trades are based on the annual yield-to-maturity expressed as a percentage out of 365 or 366 days (ACT/ACT). BTAN trades are settled by central and international securities depositories.

Since 1985, OATs have been the government’s preferred source of long-term finance. With maturities ranging from 2 to 50 years, they are fungible Treasury securities issued by auction according to an annual schedule published in advance. New issuances are generally associated with existing issuances. This allows the Government to issue new bonds at a price in line with the latest market prices but identical in every other way to the initial issuance. As a result, it avoids issuing too many bonds with different characteristics and guarantees the liquidity of those already issued.

OATs have a par value of €1. The value of the accrued coupon is calculated on the basis of the exact number of days over the exact number of days (ACT/ACT). OATs maturities and coupon pare paid on the 25th of each month. OAT trades are cleared by central and international securities depositories.

OAT auctions

On the Friday preceding an auction, AFT announces the bonds to be auctioned on the following Thursday and the total auction range. Auctions of long-term (maturities of 7 years or more) OATs are held on the first Thursday of the month at 10.50am while auctions of medium-term (2-7 year maturities) are held on the third Thursday of the month at 10.50am. Bids of at least one million euros are expressed on the basis of price as a percentage of par value net of accrued interest to two decimal places. Since 6 October 2014, OAT auctions have been settled at T+2, i.e. the following Monday.