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

The Netherlands, Austria, Germany and Portugal have held auctions already this week, while Italy, Greece and the EFSF have held syndications. E25.1bln has been sold so far this week.

Italy and Ireland are all still due to hold auctions today. We look for a further E9.0bln of issuance, which would bring the total for the week to E34.1bln from first round operations, considerably 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 came to the market to hold a syndication to launch a new 10-year Dec-31 BTP. The E10bln sold was in line with our expectation of "towards the bottom of the E10-14bln range". Demand was very strong with books of E67.7bln.
• The Netherlands kicked off Tuesday's auctions, selling E2.20bln of the 10-year 0% Jul-31 DSL (versus a range of E1.5-2.5bln).
• Austria then sold E1.38bln of the 4-year 0% Apr-25 RAGB and the 10-year 0% Feb-31 RAGB (E690mln of each).
• Also Tuesday, Germany allotted E3.259bln of the 7-year 0% Nov-28 Bund with issuance volumes of E4bln, in an auction that was technically only just covered.