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/ PORTIGAL AUCTION PREVIEW: The...>

EUROZONE ISSUANCE
EUROZONE ISSUANCE: / PORTIGAL AUCTION PREVIEW: The IGCP will re-open the 4.95%
Oct-23 PGB and 2.125% Oct-28 PGB on Wednesday for up to E0.75-E1.0bln.
- BACKGROUND: This will be the second tap of the Oct-23 PGB this year and the
fifth for the Oct-28. Both issues have enjoyed strong demand with cover ratios
ranging from 1.7x to 4.7x. Portugal is ahead of other Eurozone Member States in
terms of issuance, with YTD issuance currently at 73% of target.
- RV: Trading in both issues has been volatile over the past month. The Oct-23
currently trades at a yield of 0.817% with a one-month range of 0.641% to
1.032%. Similarly, the Oct-28 trades at a yield of 1.979% with a one-month range
of 1.762% to 2.193%. Portugal has sharply outperformed Italy in the last month
with the Oct-23 PGB/Oct-23 BTP spread widening from 34.4bps to 120bps and the
10-yr spread widening to 21.9bps to 84.2bps 
- RESULTS: Auction results are due around 0935GMT.

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