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ITALY T-BILL AUCTION PREVIEW
ITALY T-BILL AUCTION PREVIEW: The Italian Dipartimento Del Tesoro sells new
6-month Mar 29, 2019 BOT for E6.0bln on Wednesday.
- RV/HISTORY: For comparison, the last auction of a 6-month BOT was the Feb 28,
2019 which was sold at an average yield of 0.428% and a bid-to-cover ratio of
1.87x. The Mar 29 currently holds a grey market mid-yield of The Aug 14, 2019
currently trades at a mid yield of 0.306% according to Tradeweb, 65bps outside
equivalent EUR swap. Although uncertainty around the government's budget plans
continues to linger, particularly given that the coalition is due to agree plans
by Thursday, the rally in the Italian curve over the past two weeks suggests
investor pessimism is past the worst.
- REDEMPTIONS: Maturing bills from Italy in the amount of this sale (E6bln) is
seen underpinning the re-opening.
- TIMING: Results are due shortly after bidding finishes at 0905GMT

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