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EGB Supply For W/C Aug 29, 2022 (1/2)

EUROZONE ISSUANCE

Spain, France, Ireland and Belgium are all still due to sell bonds this week while the EU, Italy and Germany have already come to the market. We look for estimated gross nominal issuance of E33.6bln, almost double last week’s E17.3bln sold.

  • The EU kicked off issuance on Monday selling E3.749bln of the 0.80% Jul-25 EU NGEU (ISIN: EU000A3K4DJ5). This was a little below the target of up to E4.0bln, but still larger than any other EU auction held to date (with the remainder having been for up to E2.5bln).
  • On Tuesday, Italy sold E8.0bln of BTPs / CCteus: E3.25bln of the on-the-run 5-year 2.65% Dec-27 BTP (ISIN: IT0005500068), E1.25bln of the off-the-run 3.50% Mar-30 BTP (ISIN: IT0005024234), E2.25bln of the on-the-run 10-year 2.50% Dec-32 BTP (ISIN: IT0005494239) and E1.25bln of on-the-run the 0.75% Oct-30 CCTeu (ISIN: IT0005491250). There was no takeup in the second round.
  • Germany held a syndication yesterday to sell E5.0bln (E4.75bln allotted) of the new 1.30% Oct-27 Green Bobl (ISIN: DE0001030740). The transaction size was E5bln with books of E14bln.

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