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ITALY T-BILL AUCTION PREVIEW
ITALY T-BILL AUCTION PREVIEW: The Italian Dipartimento Del Tesoro issue a new
6-month Jun 29, 2018 BOT for E6.5bln Wednesday. 
- RV: The mid-yield on the old 6-month May 31, 2018 BOT is currently seen at
-0.477%, towards the bottom end of its 1-month range of between -0.393% to
-0.480%. As for the new Jun 29, 2018 BOT the grey market is indicating a
bid-yield of around -0.417%, representing a 6bps discount to the old 6-month
BOT, which looks cheap on the curve. 
- HISTORY: For comparison, at the last 6-month auction on Oct 27, the finance
ministry sold E5.5bln at an average yield of -0.436% and bid-to-cover of 1.86
times. Prior to this on Oct 27, E6bln was sold at an average yield of -0.40% and
cover of 1.99 times. 
- REDEMPTION: There will be a BOT redemption on Dec 29 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 1005GMT.

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