The Italian Dipartimento......>

ITALY AUCTION PREVIEW: The Italian Dipartimento Del Tesoro will tap the market

for E4.0-5.5bln on Thursday. On offer are the 2.45% Oct-23 BTP for E1.5-2.0bln

and the 2.80% Dec-28 BTP for E1.75-3.25bln, as well as the OCT-24 CCTeu and

Sep-25 CCTeu for a combined E0.75-1.25bln.

- BACKGROUND: This will be the last Italian auction of the year.

- RV/HISTORY: There has been no clear direction in BTPs since the beginning of

November. Following the sell-off during the first three weeks of November,

yields are now back in line with trading levels at the beginning of the month.

Similarly, there has been limited changed in the curve. For comparative

purposes, at the last respective auctions E2.0bn was allotted of the 2.45%

Oct-23 BTP E2.0bln at an average yield of 2.58% and cover ratio of 1.477x,

E2.5bln of the 2.80% Dec-28 BTP at an average yield of 3.36% and cover ratio of

1.486x, E0.995bln of the OCT-24 CCTeu at an average yield of 2.32% and cover

ratio of 1.623x, and E1.0bln of the Sep-25 CCTeu at an average yield of 2.32%

and cover ratio of 1.669x.

- TIMING: Results are due shortly after the auction closes at 1020GMT.