EGB supply for W/C 7 June, 2021 (1/2)

The EFSF, the Netherlands, Austria, Germany, Portugal and Italy are all due to issue bonds this week. We look for issuance from first round operations of E32.0bln, higher than last week's E25.1bln.

• The EFSF completed its Q2 funding yesterday, selling E2.5bln of its 0% Apr-24 bond via syndication. The EFSF had originally planned to issue E2.0bln but upsized the transaction "especially to satisfy investor demand" and will reduce its Q3 funding target to E2.0bln.
• Italy will come to the market in the "near future" to sell a new 10-year Dec-31 BTP via syndication. We expect the transaction to take place today and look for a transaction size probably towards the bottom of the E10-14bln range.
• The Netherlands will kick off this morning's auctions, looking to sell E1.5-2.5bln of the 10-year 0% Jul-31 DSL.
• Austria then will look to sell E1.38bln of the 4-year 0% Apr-25 RAGB and the 10-year 0% Feb-31 RAGB.
• Also this morning, Germany looks to sell E4bln of the 7-year 0% Nov-28 Bund.