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Italy on Friday sells.........>

ITALY AUCTION PREVIEW
ITALY AUCTION PREVIEW: Italy on Friday sells E2.5bln-E3.0bln of new 0.00% Nov-20
CTZ, and E0.5bln-E1.0bln of the 1.30% May-28 BTPEi linker (re-open). -
BACKGROUND: Italy have met 78% of planned issuance for this year, below the 89%
mark of the wider eurozone. - HISTORY: Although the Nov-20 CTZ is a new issue,
it is currently trading on the grey market at a yield of 1.66% (via Bloomberg).
At the last auction of the 1.30% May-28 BTPEi linker, E1.25bln was allotted at
an average real yield of 1.55% and real cover of 1.639x. - RV: Italian BTPs have
sold off since mid September as Rome remains at odds with Brussels over the
budget. The 2-Yr Yield is trading at 1.167%, close to early September levels and
up from 0.617% mid September. The 10-Yr is trading 71bps up since mid September
at 3.4974%, with the 2s10s bear flattening in the same time period. - TIMING:
Results will be available shortly after auction close around 0920GMT

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