Germany, Spain, France and Belgium are due to sell bonds next week. We look for estimated gross nominal issuance of E13.1bln, down from this week’s E17.9bln sold.
- Germany will kick off issuance for the week on Wednesday with E1.5bln of the 15-year 1.00% May-38 Bund (ISIN: DE0001102598) on offer.
- On Thursday, Spain will look to sell 4/5/10-year Oblis and the 10-year Obli-Ei with amounts to be confirmed on Monday. On offer will be the 1.30% Oct-26 Obli (ISIN: ES00000128H5), the 0.80% Jul-27 Obli (ISIN: ES0000012G26), the 2.55% Oct-32 Obli (ISIN: ES0000012K61) and the 0.70% Nov-33 Obli-Ei (ISIN: ES0000012C12).
- Also Thursday, France will look to sell E5-6bln of LT OATs. On offer will be the 2.00% Nov-32 OAT (ISIN: FR001400BKZ3) and the 1.25% May-34 OAT (ISIN: FR0013313582).
- On Friday, Belgium will hold an ORI Facility operation. The OLOs on offer will be confirmed Thursday but an amount of E500mln is likely.
NET NOMINAL FLOWS: The week ahead sees redemptions totalling E22.4bln - a formerly 5-year BTP for E18.2bln, a formerly 5-year GGB for E3.0bln and a formerly 5-year floating PGB for E1.2bln. In addition there are E12.9bln of coupon payments due – of which E8.4bln are Austrian and E4.4bln Italian. Together with estimated gross issuance of E13.1bln, MNI estimates net nominal issuance of negative E22.2bln next week, versus this week’s negative E13.4bln.
For a calendar of all announced EGB/EU/ESM/EFSF auctions see the MNI EZ/UK Bond Supply Calendar here.