ITALY T-BILL AUCTION PREVIEW: On offer next week

Tsy futures remain modestly weaker (TYZ5 at 113-22, -2 vs. 113-19.5 low) ahead of the $13B 20Y bond auction re-open (912810UN6) at 1300ET, WI is currently at 4.522%, 9.1bp rich to last month's stop. Today's results will be available shortly after the competitive auctions closes at 1300ET.

• September auction recap: Treasury futures dipped slightly (TYZ5 113-18) after the $13B 20Y Bond auction re-open (912810UL0) reopen traded through, drawing a high yield of 4.613% vs WI yield of 4.615%; Bid-to-cover: 2.74, rebounding from a lower 2.54 in Aug after 2.79 in Jul.
• Peripheral stats: indirect take-up at 64.6% vs. 60.6% prior; direct bidder take-up 27.9% from 21.9% prior; primary dealer take-up of 7.5%.

• US TSY 19Y-10M BOND AUCTION: NON-COMP BIDS $66 MLN FROM $13.000 BLN TOTAL

• Another risk-off move here as Reuters reports the US considers curbs on China exports "made with US software".
  TYZ5 pares losses: trades up to 113-26 before slipping back to -23.
• Stocks gap lower but are paring move just as quickly:
  • DJIA down 244.78 points (-0.52%) at 46805.39
  • S&P E-Mini Future down 44 points (-0.65%) at 6744
  • Nasdaq down 261.7 points (-1.1%) at 22741.78