Halister News

(Bloomberg) -- Italy to sell 0.45% 06/2021 for EU1.75b-2.25b, 1.6% 06/2026 for EU2b-2.5b and CCTeu 07/2023 for EU2.5b-3b at 11am CET. Analysts see lack of concession on the curve, though highlight recent underperformance vs SPGBs.

• SocGen (Marc-Henri Thoumin)
  • Both conventional bonds have seen no particular concession on the curve; generally both 5Y, 10Y sectors offers good pick-ups vs shorter-dated BTPs
  • Cross-market both bonds have underperformed their SPGB equivalents, may see some convergence in coming months

• Mizuho (Antoine Bouvet)
  • 10Y has failed to cheapen significantly on the roll, though has put in sector did offer some concession vs neighboring 2023, 2028 maturities
  • Limited concession in the 5Y as roll has been resilient, despite trend of 5Y rolls cheapening into their first tap
  • 5Y has seen some cheapening vs 5Y high coupon issues, mixed performance vs other sectors of BTP curve

• Danske (Anders Moller Lumholtz)
  • Expect bid/covers toward lower-end of range for BTPs given ongoing uncertainty regarding Italian banks, debate about bank treasuries holding large amounts of domestic sovereign bonds
  • Despite recent underperformance vs Spain, solid increase in QE, do not expect “massive” demand