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Italy will come to market.....>

ITALY AUCTION PREVIEW
ITALY AUCTION PREVIEW: Italy will come to market on Thursday to auction the
0.65% May-26 BTPEi and the May-22 CTZ for a combined E4.5-5.5bn.
- BACKGROUND: The 0.65% May-26 BTPEi is a new issue. The May-22 CTZ was last
re-opened on 26 May with E4.0bn sold at an average yield of 0.44% and
bid-to-cover of 1.42x.
- RV/HISTORY: While BTPs traded weaker on Wednesday on the back of a broader
risk-off theme connected to the increase in coronavirus cases outside of Europe,
this has not derailed the rally in place since the beginning of May. Spreads
over bunds have also narrowed over the same period as sovereign risk has been
gradually priced out on the back of the continued monetary expansion;
particularly the ECB's beefed up (and targeted) PEPP. Italy will be the sole EGB
issuer on Thursday and there are no significant data releases ahead of the
auction.  
- TIMING: Results are due out after the auction closes at 1000BST.

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