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

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

6-month Aug 31, 2018 BOT for E6bln Monday. 

- RV: The mid-yield on the old 6-month Jul 31, 2018 BOT is currently seen at

-0.424%, towards the bottom end of its 1-month range of between -0.402% to

-0.434%. As for the new Aug 31, 2018 BOT the grey market is indicating a

bid-yield of around -0.395%, representing a 2.9bp discount to the old 6-month

BOT, which looks cheap on the curve. 

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

ministry sold E6.5bln at an average yield of -0.417% and bid-to-cover of 1.39

times. Prior to this on Dec 27, E6.5bln was sold at an average yield of -0.457%

and cover of 1.43 times. 

- REDEMPTION: There will be a BOT redemption on Feb 28 totalling E6bln, leaving

net cash flow flat which is seen underpinning demand. 

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