ITALIAN DISCOUNT CERTIFICATE ISSUE UNDERSUBSCRIBED
The Bank of Italy said market operators
had taken up 1,111 billion lire of indexed government discount
certificates (CTs) out of an offer of 2,500 billion lire.
    The Bank took up 600 billion lire and 789 billion were
unassigned.
    The seven-year certificates carry a first-year coupon
payable April 21 1988 of 4.86 pct, identical to that on the
preceeding issue of CTs in March.
    They were offered at a base price of 72 lire, down from 74
previously, for an effective annual yield on the first coupon
of 10.15 pct against 9.66 in March. Yields after the first year
will be linked to rates on 12-month Treasury bills.
