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ITALY T-BILL AUCTION PREVIEW
ITALY T-BILL AUCTION PREVIEW: The Italian Dipartimento Del Tesoro sells E6.0bln
of the new 6-month Feb-28, 2019 BOT on Wednesday.
- RV/HISTORY: For comparison, the last auction of a 6-month BOT was the Jan 31,
2019 which was sold at an average yield of 0.066% and a bid-to-cover ratio of
1.8x. The Jan-31, 2019 BOT currently trades at a yield of 0.253%, up from a
month low of 0.028% on August 1 and 50.2bps outside of the comparable EUR swap.
In addition to redemptions supporting the auction, the recent proclamation from
Minister of the Economy and Finance Giovanni Tria that Italy will not breach the
EU's 3% deficit limit will be positive on the margin.
- REDEMPTION: There will be E6.0bn in redemptions this week from Italy, in
addition to a combined E10.7bn from France, Netherlands and Greece.
- TIMING: Results are due after the auction closes at 0905GMT

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