Halister News

(Bloomberg) -- Italy to sell 3Y for EU3b-3.5b, 7Y for EU2.25b-2.75b, 15Y and 30Y each for EU1.5b-2b at 11am CET. Analysts expect the large redemptions due later this week to underpin the auction.

• Mizuho (Antoine Bouvet)
  • 3Y roll estimate ~6.5bps; given downside risks, grey market pricing is slightly expensive, though expect limited cheapening; 7Y issue less attractive than older benchmark
  • 03/2030 issue trades special in repo, suggests short covering demand at the tap from dealers; neutral on 03/2047s
  • EU16b redemption from an old 5Y BTP due later this week should be supportive

• Unicredit (Elia Lattuga)
  • EU16.2b in redemptions due on April 15 should support the auction; positive yield, rising ECB liquidity should provide additional support for new 3Y
  • 7Y BTP trades rich on 5s7s10s fly, though it’s cheaper vs neighboring bonds; 7Y BTP has cheapened by over 10bps vs SPGB over past 3 weeks
  • 15Y bond has attracted good demand, currently trades at relatively rich lvls; 10s30s Italy looks steep vs swaps, core curves

• ING (Martin van Vliet)
  • Expect new 3Y to start trading at a 6bp pick-up vs old 3Y benchmark; auction should receive some from EU16.8b in Italian redemptions, coupon flows