EGB supply for W/C 24 May, 2021

Italy and Germany are still due to sell bonds this week while the Netherlands and EU came to the market yesterday. We estimate gross nominal issuance for the week of E17.9bln, substantially down on last week's E47.6bln.

• The Netherlands came to the market on Tuesday to sell E1.7bln of the long 25-year 2.75% Jan-47 DSL against an issuance target of E1-2bln.
• The EU held a syndication on Tuesday, tapping E460mln of the 0.25% Apr-36 bond with the proceeds to be used for its MFA programme.
• Italy will sell E3.0-3.5bln of the 0% Nov-22 BTP Short Term and E0.75-1.25bln of the short 10-year 0.40% May-30 BTPei this morning.
• Germany will then look to sell E2.5bln of its 15-year 0% May-36 Bund. Recent German auctions have been weak, so there will be extra focus on this auction.
• Italy will conclude issuance for the week on Friday, selling up to E8.5bln of MT/LT BTPs: E2.5-3.0bln of the 0% Apr-26 BTP, E3.0-3.5bln of the 0.60% Aug-31 BTP and E1.5-2.0bln of the 0.50% Apr-26 CCTeu.

NET NOMINAL FLOWS: There was a large E20.31bln French OAT that matured on 25 May with a further E9.2bln of coupons due (E8.3bln of which are French). These will likely outweigh gross issuance of E17.9bln, leaving net negative nominal flows of E-11.7bln. This is in contrast to last week's net nominal flow of E44.9bln.

For a longer look ahead see the MNI Eurozone/UK Bond Auction calendar.