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Italy sells E2.0-2.5bln CTZ...>

ITALY AUCTION PREVIEW
ITALY AUCTION PREVIEW: Italy sells E2.0-2.5bln CTZ 0% Oct-19 today. 
- BACKGROUND: This is not a reduced size CTZ offering to account for the thinner
conditions. 
- RV/HISTORY: CTZ and traditionally these instruments head to the domestic
investors. They also tend to trade on a cheaper curve that the BTPs. The Oct-19
trades with a 6bp asset swap spread to the BTP 0.05% Oct-19, which is almost a
zero coupon bond but those 5bp of coupon do make it slightly more useful as
collateral at the ECB. There is a very generous 7bp roll to the previous CTZ
May-19. Against the German Schatz Sep-19, the spread is 53bp and on the wide
side of the recent range.
- TIMING: Auction cut-off is 1000GMT, results are around 1020GMT

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