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

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

6-month Jul 31, 2018 BOT for E6.5bln Monday. 

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

-0.42%, towards the middle of its 1-month range of between -0.393% to -0.47%. As

for the new Jul 31, 2018 BOT the grey market is indicating a bid-yield of around

-0.39%, representing a 3bps discount to the old 6-month BOT, which looks cheap

on the curve. 

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

ministry sold E6.5bln at an average yield of -0.457% and bid-to-cover of 1.43

times. Prior to this on Nov 28, E5.5bln was sold at an average yield of -0.436%

and cover of 1.86 times. 

- REDEMPTION: There will be a BOT redemption on Jan 31 totalling E6.5bln,

leaving net cash flow flat which is seen underpinning demand. 

- TIMING: Results are due to be announced at around 1005GMT.