Italy sells the Sep-25........>

ITALY AUCTION PREVIEW: Italy sells the Sep-25 CCTeu for E1.5-2.0bln, 0.95%

Mar-23 BTP for E1.50-E2.0bln and 2.0% Feb-28 for E2.0-E2.5bln on Thursday.

- BACKGROUND: Despite the recent political turbulence, auctions have been

reasonably well covered since the general election. As it stands, Italy has met

55% of planned issuance for 2018.

- RV/HISTORY: Italian bond yields have traded in a wide range over the last

month, with daily yield changes continuing to surpass activity in the core EGB

markets. The 0.95% Mar-23 is the benchmark 5-year BTP and its yield has traded

within a 1.44-3.03% range since the end of May. Having sold off to 2.013% on

June 26, the yield has pulled back to 1.879% and trades 157.8bps outside the

comparable EUR swap. The 2.0% Feb-28 is also a benchmark for the 10-year bucket,

and has traded in a relatively tighter 2.518-3.148% range over the past month.

It currently trades at 2.805% and 183bps outside the swap.

- TIMING: Auction results are due after the auction closes at 1100GMT