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

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

6-month Sep 28, 2018 BOT for E6bln Monday. 

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

-0.445% according to Tradeweb, towards the middle of its 1-month range of

between -0.375% to -0.50%. As for the new Sep 28, 2018 BOT the grey market is

indicating a mid-yield of around -0.42%, representing a 2.5bp discount to the

old 6-month BOT, which looks cheap on the curve. 

- HISTORY: For comparison, at the last 6-month auction on Feb 26, the finance

ministry sold E6bln at an average yield of -0.403% and bid-to-cover of 1.57

times. Prior to this on Jan 29, E6.5bln was sold at an average yield of -0.417%

and cover of 1.39 times. 

- REDEMPTION: There will be a BOT redemption on Mar 29 totalling E6bln, leaving

net cash flow flat which is seen underpinning demand. 

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