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

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

6-month Apr 30, 2018 BOT for E6bln on Friday. 

- RV: The mid-yield on the old 6-month Mar 29, 2018 BOT is currently seen at

-0.402%, close to the bottom end of its 1-month range of between -0.361% to

-0.415%. As for the new Apr 30, 2018 BOT the grey market is indicating a

mid-yield of around -0.336%, representing a 4.3bps discount to the old 6-month

BOT, which looks cheap on the curve, according to Tradeweb. 

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

ministry sold E6bln at an average yield of -0.382% and bid-to-cover of 2.07

times. Prior to this on Aug 29, E6bln was sold at an average yield of -0.356%

and cover of 1.72 times. 

- REDEMPTION: There will be a BOT redemption on Oct 31 totalling E6.6bln,

leaving net cash flow negative to the tune of E600mln which is seen underpinning

demand. 

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