Today Italy comes to the......>

ITALY AUCTION PREVIEW: Today Italy comes to the market to issue 3yr and 7yr

BTPs, with E2.5-3.0bln of the 1.00% Jul-22 BTP and E2.0-2.5bln of the 2.10%

Jul-26 BTP on offer.

- BACKGROUND: The 1.00% Jul-22 BTP was last tapped on 13 Jun with an average

yield of 1.05% and bid-to-cover of 1.64. Outside of the launch auction, the

three subsequent auctions have all been of E2.5bln-2.75bln with bid-to-covers

around the 1.6 mark. Since the last auction, BTPs have rallied substantially as

the risk of an imminent EDP has been removed and the prevailing yield on the

Jul-22 BTP is now trading in a 0.52-0.62% range. Today's auction will bring the

total amount outstanding to E16.5b-17bln.

- BACKGROUND: This will be the fourth auction of the 2.10% Jul-26 BTP. It was

last tapped on 13 Jun with E1.51bln sold, a bid-to-cover of 1.92, and an average

yield of 1.96%. Prevailing yields have been trading between 1.33-1.41% over the

past few days.

- RESULTS: Results will be available after 10:00BST.