EGB supply for W/C 31 May, 2021

Spain and France look to issue tomorrow while Belgium and Germany have already issued this week. We look for gross nominal issuance of E24.8bln for the week, up from last week's E18.3bln.

• Belgium kicked off issuance on Monday, and concluded issuance for the month of May. It sold E3.4bln of 4/10/30-year OLOs, at the top of its E2.9-3.4bln target range: E980mln of the 0.80% Jun-25 OLO, E1.477bln of the 0% Oct-31 OLO and E945mln of the 1.70% Jun-50 OLO.
• Germany sold linkers on Tuesday with issuance volumes of E400mln each: E355mln was allotted of the 0.50% Apr-30 ILB and E310mln allotted of the 0.10% Apr-33 ILB.
• Germany returned to the market yesterday to sell E4bln of the 0% Apr-26 Bobl. Again the auction was on the weak side, with a bid-to-cover of just 1.00x.
• This morning, Spain will look to sell the 5-year 0% Jan-26 Bono, the off-the-run 1.45% Oct-27 Obli, the 20-year 1.20% Oct-40 Obli and the 0.65% Nov-27 Obli-Ei. The amount will be announced on Monday.
• France will conclude issuance for the week with E10-11bln of LT OATs/Green OAT on offer: the 0% Nov-31 OAT, the 4.00% Apr-55 OAT, the 0.50% May-72 OAT and the 0.50% Jun-44 Green OAT.

NET NOMINAL FLOWS: There is a E15.7bln BTP redemption due on 1 June (the originally 5-year 0.45% Jun-21 BTP) and a E4.75bln EU bond maturing on 4 June (originally used for the EFSM programme as a 10-year 3.50% Jun-21 bond). Coupon payments will total 2.0bln (E1.7bln from Italy). With gross nominal issuance of E24.8bln, we look for small positive flows of E2.3bln. Last week saw a net negative nominal flow of E-11.9bln.

For more details on future EGB operations see the MNI Eurozone/UK Bond Supply Calendar here.