On Jan 25 the Dipartimento....>

ITALY AUCTION PREVIEW: On Jan 25 the Dipartimento del Tesoro will tap the market

for a combined E3.5-5.0bln. On offer are the 0.05% Nov-20 CTZ for E2.0-2.5bln,

the 1.30% May-28 BTPEi for E0.75-1.25bln, and the 2.55% Sep-41 BTPEi for

E0.75-1.25bln.   

- HISTORY: For comparative purposes at the last auctions of the above bonds: 

Nov 27: E2.0bln of 0.00% Nov-20 CTZ was sold, average yield 0.70%, cover 1.78x. 

Oct 26: E1.0bln of 1.30% May-28 BTPEi was sold, average yield 2.34%, cover

1.38x.  

Jun 26: E0.4bln of 2.55% Sep-41 BTPEi was sold, average yield 2.14%, cover

1.77x.  

- RV/BACKGROUND: Italian BTPs have been well bid in 2019 and on Thursday

received support from Draghi's comments that "economic risks have moved to the

downside". BTP yields are now approaching 6-month lows across the curve. 

The Nov-20 CTZ currently trades at 0.46%, May-28 BTPEi at 1.79%, Sep-41 BTPEi at

2.34%.       

- HISTORY: Results will be due shortly after the auction closes at 1000GMT.