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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.

BTANs
Like BTFs, BTANs are tradable Treasury securities with an initial maturity 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 January 1, 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 December 31, 2014, outstanding BTANs stood at €143,437 million for six fixed-rate lines maturing on July 25, 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). It is traded on the market based on the annual yield-to-maturity expressed as a percentage out of 365 or 366 days (ACT/ACT). BTAN trades are cleared by central and international securities depositories.

OATs
Since 1985, OATs have been the Government’s preferred source of long-term finance. With maturities ranging from 2 to 50 years, they are 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 mature and coupons are paid on the 25th of each month. OAT trades are cleared by central and international securities depositories.

OAT and BTAN 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 (from 7-year maturities onwards) 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 October 6, 2014, OAT auctions have been settled at T+2, i.e. the following Monday.