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Free AccessToday, Italy sells............>
ITALY AUCTION PREVIEW: Today, Italy sells E2.0-2.5bln of the 5Y BTP 0.9% Aug-22,
E1.5-2.0bln of BTP 2.05% Aug-27, E1.0-1.5bln of CCTeu Oct-24.
- BACKGROUND: There is an index extension set for tomorrow, that might be more
beneficial for the 10Y BTP.
- RV/HISTORY: The Italian 10Y BTP spread to Germany has traded in a narrow range
around 165bp since mid-June and is 167.6bp today. The Aug-27 does not look
particularly cheap to the BTP future. What looks interesting is vs Spain with a
Catalan referendum this weekend and the BTP spread to Bonos having widened from
40bp in mid-Sep to 51bp today and this could be a good way to get involved in
today's 10Y. The 5Y BTP offers little along the curve, not looking particularly
cheap vs shorter Italian bonds. 5Y Italy is also trading close to tightest
levels vs Germany.
- The 6 auction average bid-cover for CCT auctions is 1.52x. For the 5Y and 10Y
BTP, equivalent numbers are coincidentally both 1.46x, with most recent yields
of 0.84% and 2.09% respectively.
- TIMING: Auction cut-off is 0900GMT/1000BST, results are around 0920GMT.
To read the full story
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.