Italy will come to market.....>

ITALY AUCTION PREVIEW: Italy will come to market today to raise E6.5-8.5bln. On

offer are the 1.75% Jul-24 BTP, 3.00% Aug-29 BTP, Jan-25 CCTeu and the Apr-25

CCTeu.

- PREVIOUS AUCTION RESULTS (Date/Sold/Average yield/bid-to-cover): 1.75% Jul-24

BTP (June 27, 2019 / E2.25bln / 1.34% / 1.48x), 3.00% Aug-29 BTP (June 27, 2019

/ E2.75bln / 2.09% / 1.32x), Jan-25 CCTeu (June 27, 2019 / E1.0bln / 1.95% /

1.74x).

- RV/HISTORY: Italian BTP yields have continued to push lower in July, with the

long-end outperforming. Spreads over bunds have narrowed, with the 10-year

BTP-Bund differential now trading at 197bp from 287bp at the end of May. The

implied improvement in credit risk (driven largely by expectations of a new wave

of ECB policy easing) has similarly played out through narrower CDS spreads,

with the 5-year benchmark trading at 161bp, down from a June high of 230bp.

However, BTPs still trade relatively cheap relative to the comparative EUR swap:

1.75% Jul-24 BTP (+116.6bp), 3.00% Aug-29 BTP (+161.9bp), Jan-25 CCTeu.

- TIMING: Results are due out at 1000 London time.