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Italian issue ripe for EUR short?
Italy issued up to €8b worth of bonds this morning with maturities ranging between 2014 and 2020. The major concern to the market has always been any evidence of further weakening in investor demand for “peripheral” sovereign paper. The Italian issue is competing this week with sales of securities in Belgium, France and Spain of as much as 10b EUR’s. The amount of the Italian auction is very “modest, but a challenging one in this economic climate.” The placement could have easily been canceled or postponed as the Italian Treasury and Prime Minister Monti could do without the headache, but, that would have ... (full story)