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

• Greece held a syndicated tap of its 10-year 0.75% Jun-31 GGB, selling E2.5bln slightly below the MNI estimate of E3.0bln. This leaves just E500mln of issuance to complete the PDMA's higher scenario funding target of E12.0bln for 2021 and we have discussed that with favourable funding conditions in H2 and with more funding than originally expected from the EU, Greece could look to complete its IMF repayments in 2021.
• On Wednesday, Germany returned to the market to auction E1.5bln of the 30-year 0% Aug 50 Bund. The auction was better received than many German auctions recently (which have on the whole been weak).
• Portugal then sold at the top of its E750mln-1.0bln range of 7/10-year OTs: E300mln of the 0.70% Oct-27 OT and E700mln of the 10-year 0.30% Oct—41 OT.
• Italy looks to follow up Tuesday's syndication this morning by auctioning 3/7/20-year BTPs: E3.0-3.5bln of the 0% Apr-24 BTP, E2.0-2.5bln of the 0.50% Jul-28 BTP and E1.25-1.75bln of the 1.80% Mar-41 BTP.
• Ireland will also hold a bond auction this morning with E1.00-1.25bln of 8/16/25-year IGBs on offer: the 1.10% May-29 IGB, the 1.70% May-37 IGB and the 2.00% Feb-45 IGB.

NET NOMINAL FLOWS: There are a number of redemptions in this week totalling E21.2bln, the most noteworthy of which are a E5bln EFSF bond that matured on 7 June (originally issued as a 7-year) and a E14.0bln Schatz maturing on 11 June. Coupons are only E0.1bln, leaving net nominal issuance expected to come in at E11.8bln. This is larger than last week's E2.7bln but a lot lower than the E41.2bln net nominal issuance expected in the W/C 14 June.

For a longer-term look ahead, see the MNI EZ/UK Bond Auction calendar.