News Headline Summary

Italian BTPs remain underpressure this morning as markets react to yesterday's announcement from Italy's Tesoro that this Friday's auction will not include an off-the-run 10-year

- Italy to sell EUR2.75-3.5bn tap of the 2.75% 2015 BTPs.

Update details:

- At the same time, Portuguese bonds continue to underperform relative to its peers. Of note, unlike Ireland which managed to place 5y syndication yesterday, there is no indication that Portugal will conduct a similar operation. In fact, country's constitutional court has been asked to rule on whether tax hikes are fairly distributed even as the 2013 budget has been signed into law.
- PO/GE 10s spread wider by 17bps this morning.

Print 09:12, 09 Jan 2013 - Market Analysis - Source: RANsquawk