EGB Supply For W/C Apr 11, 2022

The Netherlands, Germany and Italy are due to sell bonds this week. We look for gross nominal issuance of E20.0bln, down from E30.7bln this week.

• The Netherlands kicked off issuance for the week yesterday selling E2.505bln (vs E1.5-2.5bln range) of the 10-year 0.50% Jul-32 DSL (ISIN: NL0015000RP1).
• Also on Tuesday, Germany sold E5.5bln (E4.453bln allotted) of the 0% Mar-24 Schatz (ISIN: DE0001104875).
• Today, Italy will come to the market to sell up to E8bln with a new 3-year, on-the-run 7-year and 30-year BTPs and off-the-run 7-year and 18-year BTPs on offer: E3.25-3.75bln of the new 1.20% Aug-25 BTP, E1.25-1.50bln of the 0.45% Feb-29 BTP, E0.75-1.00bln of the 3.00% Aug-29 BTP (ISIN: IT0005365165), E0.50-0.75bln of the 3.10% Mar-40 BTP (ISIN: IT0005377152) and E0.75-1.00bln of the 2.15% Sep-52 BTP (ISIN: IT0005480980).
• Also this morning, Germany will return to the market to sell E4bln of the 10-year 0% Feb-32 Bund (ISIN: DE0001102580).

NET NOMINAL FLOWS: Redemptions for the week will total E24.0bln with the most notable being a formerly 7-year BTP to mature on Friday for E17.8bln, a 5-year RFGB for E5.2bln also Friday and a floating PGB on Tuesday. Coupon payments are expected to come in at E3.6bln, of which E1.7bln are German and E0.9bln Portuguese. This would leave estimated net flows for the week at negative E7.6bln (from positive E7.2bln this week).

For a calendar of all announced EGB/EU/ESM/EFSF auctions see the MNI EZ/UK Bond Supply Calendar here.