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EGB Supply (1/2)

EUROZONE ISSUANCE

The EU, Germany, Portugal and Italy are due to issue this week. We pencil in gross nominal issuance of E17.1bln, down from E27.9bln last week (excluding retail operations).

  • The EU has announced a mandate for a 3/20-year syndication to be held on Tuesday: a E2bln tap of the 3-year 2.75% Oct-26 EU-bond (ISIN: EU000A3K4D82) and E4bln of the new long 20-year Apr-44 EU-bond (ISIN: TBC).
  • Germany will also come to the market on Tuesday to hold the last Index-Linked Bund auction of the year. On offer will be E400mln of the 10-year 0.10% Apr-33 ILB (ISIN: DE0001030583) and E200mln of the 23-year 0.10% Apr-46 ILB (ISIN: DE0001030575).
  • On Wednesday, Portugal will look to hold an exchange auction. IGCP looks to sell the 0.70% Oct-27 OT (ISIN: PTOTEMOE0035) and the 3.875% Feb-30 OT (ISIN: PTOTEROE0014). IGCP will buy back the 5.65% Feb-24 OT (ISIN: PTOTEQOE0015) at 100.624, the 2.875% Oct-25 OT (ISIN: PTOTEKOE0011) at 99.467 and the 4.125% Apr-27 OT (ISIN: PTOTEUOE0019) at 103.056.
  • Germany will return to the market on Wednesday to hold a 30-year Bund auction. E1.0bln of the 1.25% Aug-48 Bund (ISIN: DE0001102432) will be on offer alongside E1.5bln of the 0% Aug-52 Bund (ISIN: DE0001102572).

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