EGB supply for W/C Apr 5, 2021 (1/2)

Austria has already held an auction this week while Germany, Spain and France all still due to hold auctions. Italy and Portugal have announced syndications that are likely to take place today while there is still a chance that we see Finland, Ireland or Slovakia also launch a syndication this week. We estimate E40.0bln of gross nominal issuance this week, significantly higher than the E12.6bln issued last week.

• Austria kicked off issuance yesterday with E1.50bln of 10/30-year RAGBs: E977.5mln of the 0% Feb-31 RAGB and E517.5mln of the 0.75% Mar-51 RAGB.
• Germany will come to the market tomorrow with E4bln of the 0% Apr-26 Bobl on offer.
• Italy has announced a mandate for a dual-tranche syndication to tap the existing 7-year 0.25% Mar-28 BTP and new 50-year Mar-72 BTP. We expect the transaction to take place today. We expect E8-10bln of the 7-year BTP and E4-8bln of the 50-year with a total transaction size of E12-16bln.
• Portugal has also announced a mandate for a new 10-year OT maturing October 2031. We also expect the transaction today and look for a size of E4-5bln.