E1.0-1.5bln of 10/30y IGBs

The NTMA will come to the market this morning to sell E1.0-1.5bln of 10/30-year IGBs.

• 0% Oct-31 IGB: The new 10-year benchmark was launched in January via syndication for E5.5bln with books of E40bln. This was a very successful syndication but saw lower demand than the previous 10-year syndicated launch in June (where E6.0bln was sold from books of E69bln). Today's auction is likely to be the first 10-year issuance since the June syndication to see a yield in positive territory.
• 1.50% May-50 IGB: The 30-year benchmark was launched via syndication in May 2019 and was reopened via auction four times in 2020. All auctions saw strong demand with bid-to-covers ranging from 1.70x-2.86x. The last auction on 12 November saw E400mln sold with a bid-to-cover of 1.86x at a yield of 0.418%. Prevailing yields at the type of writing are around 25bp higher so we are likely to see the highest 30-year yield at auction since May. We expect strong demand today.
• Timing: Results will be available shortly after the auction closes at 10:00GMT.