MNI SOURCES: Italy May Await Better Markets Before Dollar Sale

     LONDON (MNI) - Italy's Treasury may await "more favourable market

conditions" later this year before selling its planned U.S.-dollar-denominated

bonds, sources familiar with the upcoming deal told MNI.

     "All is ready for the issuance but given it will not be a one-off operation

and will form part of a prolonged issuance programme, we need to take into close

examination a series of key factors," said one of the sources, adding that the

euro-dollar exchange rate was among factors being monitored. Even so,

indications of maturities for the multi-tranche deal could be announced over the

next few days, the source said.

     Another source said global trade tensions were also complicating the

prospects for the sales, which figures in the government's 2019 issuance plan.

     "We're facing a hot moment right now," the second source said.

     Italian officials held a call with investors earlier on Monday, but

disclosed few details. Another call could follow in the coming days to announce

details of maturities, the sources said, adding that the size and timing of the

deal would probably not be disclosed.

     Italy's Treasury first needs to see evidence of appetite for the bonds, the

sources said.

     "We're still pinpointing the exact timing, waiting for the best possible

market conditions. It is important that the timing is optimal," said the second

source.

--MNI London Bureau; +44 203 865 3829; email: jason.webb@marketnews.com

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