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On Wednesday, Italy sells.....>

ITALY AUCTION PREVIEW: On Wednesday, Italy sells E2.0-2.5bln of BTP 0.35%
Jun-20, E3.5-4.0bln of a new BTP 1.45% Nov-24 & BTP 2.25% Sep-36. 
- BACKGROUND: It's a crowded day for issuance with Germany, Portugal and UK
selling debt at roughly the same time as the Italian auction. There are E43.6bln
cpns/redemptions tomorrow including E15bln from Italy. Within the periphery,
demand for Spanish debt has been modest but Italian securities still appear to
be popular.
- RV/HISTORY: Most interest is on the new 7Y. Luca Cazzulani from Unicredito in
Milan calculates a "yield roll of the new bond vs. the old benchmark (BTP May24)
of 13bp" adding that the issue size is heavy in the 7Y. Cazzulani prefers the
BTP 20Y as "Sep36 is interesting in barbell vs. the BTP Mar32 and the BTP
Sep44". The 3Y yield is down 13bp since the last auction at 0.1%. 
- The 3Y six auction average yield is 0.33% and cover 1.54x; for the 7Y BTP it
is 1.63% and 1.36x and 2.75% and 1.8x for the 20Y.
- TIMING: Auction cut-off is 0900GMT/1000BST, results are around 0920GMT.

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