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

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

6-month Mar 29, 2018 BOT for E6bln on Wednesday. 

- RV: The mid-yield on the old 6-month Feb 28, 2018 BOT is currently seen at

-0.384%, towards the bottom end of its 1-month range of between -0.336% to

-0.381%. As for the new Mar 29, 2018 BOT the grey market is indicating a

mid-yield of around -0.365%, representing a 2.1bps discount to the old 6-month

BOT, which looks cheap on the curve. 

- HISTORY: For comparison, at the last 6-month auction on Aug 29, the finance

ministry sold E6bln at an average yield of -0.356% and bid-to-cover of 1.72

times. Prior to this on Jul 27, E6.5bln was sold at an average yield of -0.362%

and cover of 1.62 times. 

- REDEMPTION: There will be a BOT redemption on Sep 27 totalling E6.5bln,

leaving net cash flow negative to the tune of E500mln which is seen underpinning

demand. 

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