EGB Supply

Spain, France, and Belgium all look to hold auctions this week, while Germany already held a Green auction and Italy a bilateral buyback yesterday. We pencil in an estimated gross issuance for the week at E23.4bln, down from E25.3bln last week.

• Germany will return to the market today to sell E5bln of the new 10-year 2.60% Aug-34 Bund (ISIN: DE000BU2Z031).
• Spain tomorrow, will look to issue a Bono / Obli / ObliEi auction, including the launch of the new 7-year 3.10% Jul-31 Obli (ISIN: ES0000012N43). Also on offer will be the on-the-run 3-year 2.50% May-27 Bono (ISIN: ES0000012M77), the 1.85% Jul-35 Obli (ISIN: ES0000012E69) and the 0.70% Nov-33 Obli-Ei (ISIN: ES0000012C12). For the nominals, E5-6bln will be on offer (a little higher than recent auctions – but in line with our expectation given we have the new 7-year) and a E250-750mln range for the ObliEi.
• France also tomorrow, will hold an auction to sell E8.0-10.5bln of the LT OATs. On offer will be the 3.00% May-33 OAT (ISIN: FR001400H7V7), the 1.25% May-34 OAT (ISIN: FR0013313582), the 0.75% May-53 OAT (ISIN: FR0014004J31) and the 1.75% May-66 OAT (ISIN: FR0013154028).
  • We had expected a reduction in auction size to E8.5-10.5bln. So the upper end of the auction range is in line with our expectations, but the lower end marginally smaller. This is a similar reduction in size on offer to the mid-June MT OAT auction.
• Belgium, on Friday will conclude issuance by holding an ORI Facility, likely for up to E500mln. Details will be announced tomorrow.

For more on this week's issuance and a look ahead to next week's issuance see the full PDF here:

EZ240703a.pdf