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EGB Supply For W/C Feb 28, 2022

MNI (London)

The EU, Germany, Spain and France are all scheduled to sell bonds this week. We look for E23.6bln of gross nominal issuance, up from E13.7bln last week.

  • The EU kicked off issuance for the week on Monday, concluding February issuance by selling E2.5bln of the 0% Jul-26 NGEU-Bond.
  • Germany came to the market yesterday for a E4.0bln syndicated tap of the 0% Aug-52 Bund.
  • Germany will return to the market today to sell E1.5bln of the 0% Aug-30 10-year Green Bund.
  • Tomorrow, Spain will look to sell a total of E4.5-5.5bln of nominals: the 3-year 0% May-25 Bono, the new 7-year 0.80% Jul-29 Obli and the 20-year 1.00% Jul-42 Green Obli. Also on offer will be E250-750mln of the originally 15-year 0.70% Nov-33 Obli-Ei.
  • Also Thursday, France will sell E8.5-10.0bln of LT OATs; the 10-year 0% May-32 OAT, the 3.25% May-45 OAT and the 30-year 0.75% May-53 OAT.

NET NOMINAL FLOWS: This week sees one redemption: a former 10-year BTP (5.00% Mar-22) with E20.6bln outstanding. There are also E9.6bln of coupon payments due, of which E8.1bln are Italian and E1.2bln are French. With estimated gross nominal issuance of E23.6bln, we estimate negative net flows of E6.6bln for this week (down from negative E3.7bln 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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