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

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

12-month Aug 14, 2019 BOT for E6.0bln on Wednesday. 

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

at 0.598%, towards the top end of its mid Jul to mid Aug range of between 0.775%

seen on Aug 10 and 0.146% seen on Jul 19. As for the new Aug 14, 2019 BOT the

grey market is indicating a mid-yield of around 0.713%, representing a pick up

of 14.7bps versus the old 12-month BOT and a spread of 106bp vs Eonia according

to Tradeweb. 

- HISTORY: For comparison, at the last 12-month auction on Jul 11, the finance

ministry sold E6bln at an average yield of 0.348% and bid-to-cover of 2.01

times. Prior to this on Jun 10, E6.5bln was sold at an average yield of 0.55%

and cover of 1.95 times. 

- REDEMPTION: There will be a BOT redemption on Aug 14 totalling E6.692bln,

leaving net cash flow negative to the tune of E692ln which is seen underpinning

demand. 

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