EGB Supply (1/2)

Spain is due to return to the market today in addition to issuance from Austria and France while Slovakia, the Netherlands, Germany, Finland, Italy and Greece have all come to the market already this week. We pencil in gross nominal issuance of E44.8bln, up from E18.8bln last week.

• Austria has announced a madate for a triple-tranche syndication to be held in the “near future.” On offer will be a new 7-year Oct-30 RAGB, the 13-year 0.25% Oct-36 RAGB (ISIN: AT0000A2T198) and E1bln WNG of the 1.85% May-49 Green RAGB (ISIN: AT0000A2Y8G4). We expect the transaction size for the non-Green RAGBs to be in a E2.5-4.0bln range and for the transaction to take place today.
• This morning Spain come to the market to hold a Bono/Olbi auction for E4.0-5.0bln. On offer will be the 2.15% Oct-25 Obli (ISIN: ES00000127G9), the 0.80% Jul-29 Obli (ISIN: ES0000012K53) and the on-the-run 10-year 3.55% Oct-33 Obli (ISIN: ES0000012L78). The auction size is slightly lower than the expectations we set out last week, but we have since had the 15-year ObliEi syndication. So despite the smaller auction, this week's Spanish issuance in total will be higher than we had previously pencilled in.