On Nov 27 the Departimento....>

ITALY AUCTION PREVIEW: On Nov 27 the Departimento del Tesoro comes to market for

a combined E2.5b-3.5bln. On offer are the re-opened 0.00% Nov-20 CTZ for

E2.0-2.5bln, and the re-opened 0.10% May-23 BTPEi for E0.5-1.0bln. 

- HISTORY: For comparison at the last auction of the 0.00% Nov-20 CTZ on Oct 26,

E3.0bln was allotted at an average yield of 1.63% with a cover 1.82x. At the

last auction of the 0.10% May-23 BTPEi on Jun 26, E0.84bln was allotted at an

average yield of 0.90% with a cover of 1.44x. 

- RV/BACKGROUND: After the poor take up at the BTP Italia auction last week

(E2.1bln Vs Target of E7.0bln), both of these auctions will be closely watched

to see how much demand there is for Italian debt. 

Italian BTPs across the curve rallied at the start of this week after Salvini

comments suggested that Rome might lower it's budget deficit target. 

1505GMT, Nov 26: Benchmark 5-yr BTP trades at yield of 2.35%, in a range of

2.20%-20.37%, well below Friday's close of 2.50% prior to Salvini's comments. 

No data prior to the auction, speeches from the ECBs Nouy, Costa and Mersch. 

- TIMING: Results will be due shortly after the auction closes at 1020GMT.