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EGB Supply For W/C Aug 16, 2021

EUROZONE ISSUANCE

Germany and France will both issue EGBs this week. Total gross nominal issue is expected at E15.0bln, up from this week's E4.0bln.

  • Germany kicked off issuance for the week on Tuesday, allotting E4.809bln of the new Sep-23 Schatz in a successful auction with a total issuance volume of E6.0bln.
  • Germany returned to the market yesterday, allotting E827mln of the 30-year 0% Aug-50 Bund in a strong auction with an issuance volume of E1bln.
  • France will look to sell E6-7bln of MT OATs this morning. On offer will be the 0% Mar-24 OAT, the 0.50% May-25 OAT and the 1.00% May-27 OAT.
  • France will then look to sell E0.5-1.0bln of linkers with both the 0.10% Mar-28 OATi and the 0.10% Mar-29 OATei on offer.
  • Spain's scheduled auction for this morning has been cancelled.

NET NOMINAL FLOWS: There are no redemptions this week and just E2.4bln of coupon payments due. With gross nominal issuance of E15.0bln, we estimate net nominal issuance of E12.6bln for the week (up from E2.3bln last week).

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

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