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ITALY AUCTION PREVIEW:........>

ITALY AUCTION PREVIEW
ITALY AUCTION PREVIEW: ITALY AUCTION PREVIEW: Today, Italy sells E2.0-2.5bln of
the 5Y BTP 0.9% Aug-22, E2.0-2.5bln of BTP 2.05% Aug-27, E3.0-3.5bln of CCTeu
Apr-25.
- BACKGROUND: Italian debt was upgraded by S&P on Friday to a status of BBB on
the back of firming economic recovery and stable outlook.
- RV/HISTORY: The Italian 10Y BTP spread to Germany is trading at fresh yearly
lows of 151.5bp. The new CCTeu is likely to see strong demand as confidence in
Italy grows.
- The 6 auction average bid-cover for CCTeu auctions is 1.60x. For the 5Y it is
1.49x and 10Y BTP is 1.51x with most recent yields of 0.83% and 2.19%
respectively.
- TIMING: Auction cut-off is 1000GMT, results are around 1020GMT

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