EGB supply for W/C 31 May, 2021

Belgium, Germany, Spain and France have all issued bonds this week. We look for gross nominal issuance of E25.1bln 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 (with a further E244mln non-competitive) of the 0% Oct-31 OLO and E945mln (with a further E187mln noncompetitive) 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 on Wednesday 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.
• Yesterday, Spain sold E4.96bln of nominals (target range had been E4.5-5.5bln): E1.83bln of the 5-year 0% Jan-26 Bono, E1.55bln of the off-the-run 1.45% Oct-27 Obli and E1.59bln the 20-year 1.20% Oct-40 Obli. Spain also sold E511mln of the 0.65% Nov-27 Obli-Ei.
• France concluded issuance for the week, selling E10.99bln LT OATs/Green OAT (the top of the target range): E6.27bln of the 0% Nov-31 OAT, E1.61bln of the 4.00% Apr-55 OAT, E1.31bln of the 0.50% May-72 OAT and E1.80blnthe 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 E25.1bln, we look for small positive flows of E2.6bln. 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.