Mizuho note that "yesterday Italy announced....>

BTPS: Mizuho note that "yesterday Italy announced the mandate for a new 10Y BTP

syndication. This was surprising certainly in terms of the maturity, and perhaps

on timing too. The Tesoro has moved the new 7Y in their quarterly plan into Q3,

and it's unusual to launch a new 10Y with the existing Aug30 still undersized.

This close to an ECB meeting one wonders if Italy is also concerned about a

spread widening on PEPP disappointment, but their funding needs are large. We'd

expect the goal would be to match the size of the 5Y which was issued in April

for EUR10bn. With a coupon of 1.6% we view a reasonable level for pricing as BTP

Aug30 +10bp."