ITALIAN TREASURY BILL OFFER HAS MIXED RESPONSE
Market response to the Treasury's 24,500
billion lire offer of short-term treasury bills was mixed, with
three-month paper in strong demand but six and 12-month bills
undersubscribed, Bank of Italy figures show.
    Rates were unchanged on those indicated at the time the
offer was announced.
    The market was assigned all of the 3,500 billion lire of
three-month bills on offer after requesting a total of 4,695
billion. Effective net annualised compound yield on the bills
is 9.87 pct, down from 9.98 pct on the previous issue of
three-month paper.
    Of the 9,500 billion lire of six-month paper offered,
operators requested and were assigned 7,098 billion lire at a
net annualised compound rate of 9.24 pct, down from 9.30 pct
previously.
    The market requested and was assigned 8,584 billion lire of
the 11,500 billion lire of 12-month bills offered at a net
annual rate of 9.02 pct, down from 9.05 pct previously.
    The Bank of Italy took up a total 4,200 billion lire of the
remaining six and 12-month paper, leaving 1,118 billion lire
unassigned.
    The bills replace maturing paper worth 23,442 billion lire,
of which 20,321 billion lire is in the hands of market
operators and the remainder with the Bank of Italy.
 REUTER
