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ITALY T-BILL AUCTION PREVIEW
ITALY T-BILL AUCTION PREVIEW: The Italian Dipartimento Del Tesoro issue a new
12-month Sep 14, 2018 BOT for E6.5bln on Tuesday. 
- RV: The mid-yield on the current 12-month Aug 14, 2018 BOT is currently seen
at -0.330%, close to the top end of its mid Aug to mid Sep range of between
-0.325% seen on Sep 11 and -0.352% seen on Sep 8. As for the new Sep 14, 2018
BOT the grey market is indicating a mid-yield of around -0.309%, representing a
pick up of 2.1bps versus the old 12-month BOT. 
- HISTORY: For comparison, at the last 12-month auction on Aug 10, the finance
ministry sold E6.5bln at an average yield of -0.337% and bid-to-cover of 1.63
times. Prior to this on Jul 12, E6.75bln was sold at an average yield of -0.352%
and cover of 1.65 times. 
- REDEMPTION: There will be a BOT redemption on Sep 14 totalling E6.75bln,
leaving net cash flow negative to the tune of E250mln which is seen underpinning
demand. 
- TIMING: Results are due to be announced at around 0905GMT.

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