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

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

12-month May 14, 2019 BOT for E6.5bln on Monday. 

- RV: The bid-yield on the current 12-month May 14, 2019 BOT is currently seen

at 0.536%, towards the top end of its mid May to mid Jun range of between 1.38%

seen on May 29 and -0.337% seen on May 14 sue to the political crisis in Italy.

As for the new Jun 14, 2019 BOT the grey market is indicating a mid-yield of

around -0.583%, representing a pick up of 8.5bps versus the old 12-month BOT and

a spread of 93.1bp vs Eonia according to Tradeweb. 

- HISTORY: For comparison, at the last 12-month auction on May 10, the finance

ministry sold E6.5bln at an average yield of -0.361% and bid-to-cover of 1.38

times. Prior to this on Apr 11, E6.0bln was sold at an average yield of -0.399%

and cover of 1.52 times. 

- REDEMPTION: There will be a BOT redemption on Mar 14 totalling E6.5bln,

leaving net cash flow flat which is seen underpinning demand. 

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