Italy will seek to raise......>

ITALY AUCTION PREVIEW: Italy will seek to raise E6.25-7.50bln on Friday through

sales of the 0.35% Feb-25 BTP, 1.35% Apr-30 BTP and and the Jan-25 CCTeu. 

- BACKGROUND: The 0.35% Feb-25 BTP is a new issue. Previous auction results

(date of auction, amount sold, average yield, bid-to-cover): 1.35% Apr-30 BTP

(August 29, E4.0bln, 0.96%, 1.32x), Jan-25 CCTeu (August 29, E1.0bln, 0.77%,

1.70x).

- RV/HISTORY: The BTP curve has continued to bull flatten in September and

spreads with bunds have narrowed. While partly reflecting the weak outlook for

growth and inflation, spread compression has also been driven by an improvement

in risk perception as reflected in narrowing CDS spreads. EGB auctions this week

have been relatively robust, including a E6.5bln BOT sale on Thursday which was

well covered. 

- TIMING: Results are due out after the auction closes at 1000GMT.