ITALIAN TREASURY BILL OFFER MEETS MIXED DEMAND
Market response to the Italian Treasury's
3,000 billion lire offer of short-term bills (BOTs) was mixed,
with six month paper oversubscribed but 12-month bills little
in demand, Bank of Italy figures show.
    Rates were unchanged on those indicated at the time the
offer was announced on April 4.
    The market was assigned all the 1,500 billion lire worth of
six-month bills on offer after requesting a total of 1,660
billion. Effective net annualized compound yield on the bills
is 9.19 pct, against 9.24 pct at the end-March auction.
    Of the 1,500 billion lire of 12-month paper offered,
operators requested and were assigned 911.975 billion lire at a
net annualized compound rate of 9.02 pct.
    The Bank of Italy took up the remaining 588.025 billion
lire of 12-month paper.
    The bills replace maturing paper worth 2,485 billion lire
of which 1,985 billion was in the hands of market operators and
the remainder with the Bank of Italy.
 Reuter
