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EGB Supply for W/C Feb 1 (2/2)

EUROZONE ISSUANCE
  • On Thursday, Spain looks to sell E5-6bln of conventionals and E250-750mln of linkers. On offer will be the 0% May-24 Bono, the 0% Jan-26 Bono the 0.10% Apr-31 Obli and the 0.70% Nov-30 ObliEi.
  • Also Thursday France looks to sell E10-11bln of LT OATS: the 0% Nov-30 OAT, the 1.25% May-36 OAT, the 1.75% Jun-39 OAT and the 0.75% May-52 OAT will all be on offer.
  • Finally, Friday sees a provisional date for Belgium to use its ORI facility.
  • RECAP:
    • The EFSF sold E2.0bln of the 0% Oct-27 via syndication on Monday. This completed the EFSF's funding target of E7.0bln for Q1.
CASH FLOWS: There are E19.9bln of redemptions due (largely due to E19.4bln of the 0.05% Jan-21 Bono maturing). There are also heavy coupon payments of E11.4bln (including Spain E5.8bln and Italy E4.4bln). Together with gross issuance of E33.2bln, net cash flows are estimated to be E1.9bln (down significantly from the E41.7bln last week).

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