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RESEND: The Dipartimento......>

ITALY AUCTION PREVIEW
ITALY AUCTION PREVIEW: RESEND: The Dipartimento del Tesoro will come to market
on Wednesday for a combined E5.5bln-E7.25bln. On offer are the 2.45% Oct-23 BTP
for E1.5-2.5bln, the new 3.00% Aug-29 BTP for E3.25-4.00bln, and the 0.00%
Jan-25 CCTeu for E0.75bln-E1.25bln.
- HISTORY: The results of the last auction of the above bonds are listed below:
2.45% Oct-23 BTP: average yield 1.49%, cover 1.33x, on 30/01/19. 0.00% Jan-25
CCTeu: average yield 1.65%, cover 1.29x, on 30/01/19.
- BACKGROUND: BTPs have rallied this week following the Fitch affirmation on
Friday. The rally has gained further support from an improvement in risk
appetite, and a huge E24bln in BTP redemptions scheduled for Friday. The BTP 5yr
benchmark currently trades at a yield of 1.644%, with the 10yr benchmark at
2.724%.
- TIMING: Results are due shortly after the auction closes at 1000GMT.

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