On Jan 11 the Dipartimento....>

ITALY AUCTION PREVIEW: On Jan 11 the Dipartimento del Tesoro tap the market for

a combined E5.0-6.5bln in medium and long term bonds. On offer are the 2.30%

Oct-21, 2.50% Nov-25, and 3.45% Mar-48 BTPs. 

- HISTORY: For comparison at the last auction of the bonds: 

E2.5bln 2.30% Oct-21 BTPs were allotted on Nov 13 2018, average yield 1.98%,

cover 1.52x. 

E1.75bln 2.50% Nov-25 BTPs were allotted on Nov 13 2018, average yield 3.21%,

cover 1.52x. 

E1.5bln 3.45% Mar-48 BTPs were allotted on Sep 13 2018, average yield 3.55%,

cover 1.28x. 

- RV/BACKGROUND: On Thursday the Mar 19 BTP future traded around the 126.07 mark

and 30 ticks down on the day. The curve traded sideways across the 5yr/30yr

section, yields roughly 2.5bps down. 

Italy told MNI reporters on Thursday that nationalising Carige is only a 'last

ditch solution' for Italy and state control may include a E4.0bln bridge loan. 

- TIMING: Results are due shortly after the auction closes at 1000GMT.