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Italy re-opens 3 nominal......>

ITALY AUCTION PREVIEW
ITALY AUCTION PREVIEW: Italy re-opens 3 nominal and floating-rate bonds
Thursday, for up to E6bln. This includes E0.75-1.00bln of Jan-25 CCTEu,
E1.75-2.25bln of 1.75% Jul-24 BTP, and E2.25-2.75bln of 3.00% Aug-29 BTP.
- HISTORY: Italy last sold these three bonds on May 30. The CCTeu received
average yield of 1.95% and bid-to-cover 2.35x. The nominal 5-Yr benchmark Jul-24
fetched average yield of 1.81% and 1.78x cover, while the 10-Yr benchmark Aug-29
sold at average yield 2.60% and 1.28x cover.
- BACKGROUND/RV: This is the second Italian bond auction of the week, following
from Tuesday`s successful BTPei/CTZ sale which saw strong cover, and total sales
at the top end of the target issuance range. Since the last auction, the 10-Yr
BTP spread to Bunds has come down 40bps (last 244bps), reflecting both global
yield appetite and speculation that the ECB will ease policy in the near future
(potentially resuming asset purchases). Reports this week (including MNI's)
suggest that Rome is seeking a deal with Brussels to avoid the Excessive Deficit
Procedure, perhaps as soon as this weekend's G20 meetings.
- TIMING: Auction results will come out just after 1000UK time.

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