EGB Supply for W/C 28 June (1/2)

We estimate this week will see E26.3bln sold via auction from Belgium, Italy, Spain and France and pencil in a further E14bln for the second NGEU syndication, summing to total nominal gross issuance of E39.3bln for the week, up from E23.8bln last week.

• Belgium kicked off issuance for the week on Monday, selling E3.791bln (the top of the E3.3-3.8bln target range): E1.928bln of the 10-year benchmark 0% Oct-31 OLO, E590mln of the 1.25% Apr-33 Green OLO and E1.273bln of the 30-year benchmark 1.70% Jun-50 OLO.
• The EU has issued a mandate to hold a dual-tranche 5-year/30-year transaction today. We pencil in E14bln for the transaction (E8bln/E6bln split) but it note that the risks are for an even larger transaction with the legal limit for a syndicated transaction size at E20bln (which was the size of the inaugural 10-year NGEU launch already this month).
• Italy will end Q2 issuance tomorrow, looking to sell 5/9/10-year BTPs. On offer will be E2.5-3.0bln of the 0% Apr-26 BTP, E1.0-1.5bln of the 0.95% Aug-30 BTP and E1.0-1.5bln of the 0.90% Apr-31 BTP. Note that there will be no CCTeu on offer following the syndicated launch of the new long 7-year CCTeu last week.