On Tuesday, Italy will raise 8 billion euros with 3, 7 and 10-year sales. The 10s will be the one to watch. They are trading at 5.06%, around 140 basis points below when the ECB started buying on Aug. 8. The ECB is buying only in the secondary market so they won’t be a bidder in the auction. It’s not a high amount but a miss of more than 10 basis points leaves EUR vulnerable.
We also get Italian retail sales on Tuesday and employment on Wednesday.
