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The Italian Dipartimento......>

ITALY AUCTION PREVIEW
ITALY AUCTION PREVIEW: The Italian Dipartimento Del Tesoro will sell
E6.25-7.75bln on Wednesday. On offer are the 0.05% Apr-21 BPT for E2.0-2.5bln,
3.45% Mar-48 BTP for E1.0-1.5bln and a new 2.50% Nov-25 BTP for E3.25-3.75bln.
- BACKGROUND: Italy has met 69% of planned issuance for 2018, slightly below the
EGB total of 75%.
- RV/HISTORY: Signs that the Italian government will rein in its budget plans
have contributed to a compression in BTP spreads since the beginning of
September. However, lingering concerns over both the stability of the coalition
and the direction of economic policy have prevented a full normalisation of
credit risk. The 0.05% Apr-21 BPT trades at 1.246%, down from 1.948% on August
31 and 125.2bps outside of the comparable EUR swap. The 3.45% Mar-48 BTP, which
is the 30-year benchmark, trades at 3.564% and near the top of the 2018 range. 
- TIMING: Results are due shortly after the auction closes at 0920GMT

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