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Italy Will Sell E6.0-8.5bn of BTPs On Tuesday

ITALY AUCTION PREVIEW

Italy will come to market on Tuesday for a tap of E6.0-8.5bn. On offer are the 0.0% Jan-24 BTP, 0.95% Sep-27 BTP and the 2.45% Sep-50 BTP.

  • BACKGROUND: Previous auction results (date, volume, average yield, bid-to-cover): 0.95% Sep-27 BTP (10 Sep 2020, E3.0bn, 0.75%, 1.47x), 2.45% Sep-50 BTP (13 Aug 2020, E1.25bn, 1.91%, 1.39x).
  • RV/HISTORY: BTP have rallied sharply since the beginning of October and the curve has bull flattened, extending the broader trend in play since May. Spreads over bunds have also narrowed, with the 10-year BTP-Bund spread trading down to 122bp from 138bp at the beginning of the month. There are no significant data releases this morning ahead of the auction.
  • TIMING: Results are due out shortly after the auction closes at 1000BST.

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