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ITALY T-BILL AUCTION PREVIEW
ITALY T-BILL AUCTION PREVIEW: The Italian Dipartimento Del Tesoro issue a new
12-month Jan 14, 2019 BOT for E7.5bln on Wednesday. 
- RV: The mid-yield on the current 12-month Dec 14, 2018 BOT is currently seen
at -0.432%, towards the middle of its mid Dec to mid Jan range of between
-0.382% seen on Dec 11 and -0.508% seen on Dec 14. As for the new Jan 14, 2019
BOT the grey market is indicating a mid-yield of around -0.402%, representing a
pick up of 3bps versus the old 12-month BOT. 
- HISTORY: For comparison, at the last 12-month auction on Nov 10, the finance
ministry sold E4.5bln at an average yield of -0.407% and bid-to-cover of 2.10
times. Prior to this on Nov 10, E5.5bln was sold at an average yield of -0.395%
and cover of 2.46 times. 
- REDEMPTION: There will be a BOT redemption on Jan 12 totalling E7.7bln,
leaving net cash flow negative to the tune of E200mln which is seen underpinning
demand. 
- TIMING: Results are due to be announced at around 1005GMT.

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