MILAN, May 10 (Reuters) - Italian small savers gave a cooler response than before to the new retail bond offered by the Treasury this week, raising some doubts about their future role in Rome's strategy to manage its huge pile of debt.
The government sold a total of 11.3 billion euros ($12.18 billion) in a six-year BTP Valore bond, considerably below the record 18.3 billion euros it drew in February from a similar note.
The take-up was more sluggish from day one, immediately spurring some analysts to voice concerns.
"The relatively slow start to the latest BTP Valore suggests that the government cannot tap indefinitely into retail savings," Commerzbank strategists wrote in a note to clients.
Italy introduced BTP Valore bonds for small savers last year, part of a strategy aiming to encourage them to stockpile its 2.9-trillion-euro public debt, proportionally the second highest in the euro zone.
The plan is based on the assumption that ordinary Italians are less likely than foreign banks and funds to pull out their money in a potential market attack.
The need to increase domestic holdings has grown more pressing as the European Central Bank has wound down its asset purchase programmes, of which Italy was one of the biggest beneficiaries.
The government's policy has proved successful. Retail investors' debt holdings rose to 13.8% of the total in January from 9.2% a year earlier, according to Bank of Italy data.
The more muted reaction to the latest offer took some investors by surprise. A person close to the issuance said before it began that orders would have probably been in line with the previous placement.
However, Andrea Rocchetti, Global Head of Investment at advisory Moneyfarm, said the smaller take-up was on the cards given that the Treasury had offered an almost identical bond in February, absorbing much of the potential demand.
Rome confirmed the coupons on the bond at 3.35% for the first three years and 3.9% in the last three, with a 0.8% loyalty bonus for those who hold the note to maturity. ($1 = 0.9279 euros) (Sara Rossi, editing by Gavin Jones)
