The Italian............>

ITALY T-BILL AUCTION PREVIEW: The Italian Dipartimento Del Tesoro issue a new

6-month Feb 28, 2018 BOT for E6bln on Tuesday. 

- RV: The mid-yield on the old 6-month Jan 31, 2018 BOT is currently seen at

-0.373%, towards the middle of its 1-month range of between -0.342% to -0.390%.

As for the new Feb 28, 2018 BOT the grey market is indicating a mid-yield of

around -0.346%, representing a 2.7bps discount to the old 6-month BOT, which

looks cheap on the curve. 

- HISTORY: For comparison, at the last 6-month auction on Jul 27, the finance

ministry sold E6.5bln at an average yield of -0.362% and bid-to-cover of 1.62

times. Prior to this on Jun 28, E6.75bln was sold at an average yield of -0.372%

and cover of 1.54 times. 

- REDEMPTION: There will be a BOT redemption on Aug 31 totalling E6.15bln,

leaving net cash flow negative to the tune of E150mln which is seen underpinning

demand. 

- TIMING: Results are due to be announced at around 0905GMT.