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Citi Weigh In On PGBs After IGCP Issuance Tweak

EGBS

In light of yesterday’s issuance adjustment from the IGCP Citi note that “the annual PGB supply is now targeted at €10.3bn, almost half of our January forecast of €20bn.”

  • “This means the potential 10yr syndication that we had in our forecasts for October is now looking unlikely, with only one auction for €1-1.25bn seen over Q4.”
  • “This reduction has been mainly driven by a better budget balance and was the driver behind Fitch’s surprise rating upgrade to A- on Friday.”
  • “Fitch could well be followed by Moody’s on 17 November.”
  • “This adds to support for our long 20yr PGBs vs IRISH position initiated on Monday.”
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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