EGB Supply For W/C Aug 22, 2022

The EFSF, Belgium, Germany and Italy are all due to sell bonds this week. We look for estimated gross nominal issuance of E10.0bln, down from this week’s E11.0bln sold.

• The EFSF has issued an RFP and we expect a syndicated transaction to take place this week. We don’t have a strong conviction on the expected maturity, but expect to see a transaction size of around E2bln.
• Belgium will kick off auction issuance for the week today with a combined E1.5-2.0bln of 5/10-year OLOs on offer: the 0% Oct-27 OLO (ISIN: BE0000351602) and the 0.35% Jun-32 OLO (ISIN: BE0000354630).
• On Wednesday, Germany will look to sell E4bln of the 10-year 1.70% Aug-32 Bund (ISIN: DE0001102606).
• Italy will conclude issuance on Friday with a BTP Short Term auction. MNI expects the 1.75% May-24 BTP Short Term (ISIN: IT0005499311) to be on offer with a maximum size between E2.00-2.75bln. The BTPei auction originally scheduled simultaneously has been cancelled.

NET NOMINAL FLOWS: The only redemption of the upcoming week is an Austrian EMTN for E1.25bln due while EGB coupon payments are negligible. With estimated gross issuance of E10.0bln, MNI estimates net nominal issuance of positive E8.7bln this week, in line with last week’s positive E8.5bln.

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