Italy will sell a combined....>

ITALY AUCTION PREVIEW: Italy will sell a combined E8.75bln of medium/long-term

BTPs on Wednesday. On offer are the 0.05% Jan-23 BTP for E2.5bln, the 0.85%

Jan-27 BTP for E3.25bln, the 2.70% Mar-47 BTP for E1.5bln and the 3.85% Sep-49

BTP for E1.5bln.

- BACKGROUND: Previous auction results (date, sold, average yield,

bid-to-cover): 0.05% Jan-23 BTP (11 Oct 2019, E2.75bln, 0.05%, 1.46x); 2.70%

Mar-47 BTP (13 Mar 2018, E0.96bln, 2.92%, 2.64x); 3.85% Sep-49 BTP (11 Oct 2019,

E0.69bln, 2.03%, 3.2x).

- RV/HISTORY: Italian yields bottomed in September/October and have pushed

higher over the past two weeks. The curve has bear steepened with the 2s30s

spread widening to 244bp from a September low of 210bp. A reassessment of

near-term global economic risks and likely resistance to an upgrade of the ECB

QE programme have been contributing factors. Political risk perceptions have

stabilised with the benchmark 5-year CDS trading relatively flat since

mid-October. 

- TIMING: Results are due out after 1000GMT.