EGB Supply (1/2)

Italy, Germany, Spain, France and Belgium are all scheduled to hold auctions this week while Germany and Greece have announced mandates for syndications (and we pencil in a possible Belgian syndication this week, too). As we noted on Friday, we also see potential for other syndications to be pulled forward to this week (particularly ESM or Italian). We pencil in estimated gross issuance for the week at E50.0bln, up from E22.2bln last week, but with the return of higher redemptions and coupons.

• Germany has announced a mandate or a new 30-year Bund maturing 15 August 2054 to launch in the near future. MNI had noted the possibility of a German syndication this week (although our base case was for later in the month). We look for a transaction on today with a size of E3-4bln.
• Greece has also announced a mandate for a new 10-year GGB maturing 15 June 2034 to launch in the near future. We had fully expected the new 10-year this week. Issue sizes over past few years have generally been E3.0-3.5bln, but given the strong demand at other EGB syndications recently, we see a chance that this deal is potentially upsized. Again, we look for a transaction on today.