EGB Supply

The EU, Italy, Austria, Germany, Portugal and Ireland all look to issue this week. We pencil in gross nominal issuance of E17.3bln for the week (excluding retail funds from the BTP Italia), down from last week’s E33.1bln.

• The EU will look to hold a syndication today of a new 11-year Jul-34 EU-bond. The last non-green 10-year bond that launched saw a transaction size of E10bln in March 2022 (the 1.00% Jul-32 EU-bond) while the launch of the 10-year 2.75% Feb-33 Green EU-bond in November 2022 saw a transaction size of E6bln. We pencil in a transaction size of E6-10bln for today’s transaction, with risks skewed to the upper end of the range.
• This morning, Austria will look to sell a combined E1.495bln of the on-the-run 10/30-year RAGBs: the 2.90% Feb-33 RAGB (ISIN: AT0000A324S8) and the 0.75% Mar-51 RAGB (ISIN: AT0000A2EJ08).
• Also today, Germany will look to sell E500mln of the 0.10% Apr-33 ILB (ISIN: DE0001030583).
• Italy is issuing a new 5-year Mar-28 BTP Italia this week. The first phase of the placement will take place Mon-Wed for retail investors with day 1 takeup of E3.637bln. The second phase for institutional investors will take place Thursday.

EZ230307.pdf