Free Trial

Italy's Dipartimento Del......>

ITALY AUCTION PREVIEW
ITALY AUCTION PREVIEW: Italy's Dipartimento Del Tesoro tap its 5-year benchmark
0.95% Mar-23 BTP for between E2.25-E2.75bln and 10-year benchmark 2.0% Feb-28
BTP for between E2.5-E3.0bln and launch a new 7-year Sep 2025 CCTeu for between
E3.0-E3.5bln Friday.
- BACKGROUND: The 5-yr and 10-yr BTPs are the same bonds as offered last month
but with BTPs outperforming in last 2-weeks, does not bode well for the auction.
Source reported continued domestic buying in the 3-yr to 10-yr sector of BTPs
yesterday and saw good interest in the new CCTeu.
- RV/HISTORY: BTPs have performed strongly since the election, even though no
government has yet been formed. 10Y Bund-BTP spread is 116.5bp just off
multi-year low of 110.5bp seen just 2-days ago. While versus Spain, 10-yr BTPs
have outperformed 10-yr Bonos by 18bps since last auction in March. The 5Y 0.95%
Mar-23 has widened vs previous BTP bmk. Normally, the 10Y bmk would have a heavy
foreign participation but recent outperformance of BTPs may inhibit the bid. The
new CCTeu Sep-25 is ASW+52bp and compares to ASW+51.1bp for Apr-25 CCTeu.
- TIMING: Auction cut-off is 1000BST, results are around 1015BST.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.