EGB Supply

The EU, Slovakia, Germany, Finland and Italy are the only countries scheduled to hold institutional issuance operations this week, with subscriptions for Belgium’s retail state bonds due to begin. We pencil in estimated gross issuance (ex-retail) for the week at E27.6bln, down from an estimated E37.8bln last week.

• The EU will hold a syndication today to launch a new 10-year Dec-34 EU-bond. We pencil in a transaction size of E6-10bln (with our modal expectation looking for E7bln).
• Italy’s MEF has announced it will hold an exchange auction via the Bank of Italy today. On offer will be up to E3bln combined of the 0.80% Oct-28 CCTeu (ISIN: IT0005534984) and the 1.65% Mar-32 BTP (ISIN: IT0005094088). The MEF will look to buyback the 1.85% May-24 BTP (ISIN: IT0005246340), the 0% Aug-24 BTP (ISIN: IT0005452989), the 3.75% Sep-24 BTP (ISIN: IT0005001547), the 1.45% Nov-24 BTP (ISIN: IT0005282527) and the 2.50% Dec-24 BTP (ISIN: IT0005045270).
• Germany will then look to sell E4.5bln of the 10-year 2.20% Feb-34 Bund (ISIN: DE000BU2Z023).
• Finally today, Finland will come to the market to hold an auction for up to E750mln each of the on-the-run 5/10-year RFGBs: the 2.875% Apr-29 RFGB (ISIN: FI4000557525) and the 3.00% Sep-33 RFGB (ISIN: FI4000550249).

EZ240220.pdf