EGB Supply for W/C Jan 11

This week is set to be another busy week for issuance with the EFSF, Belgium, the Netherlands, Austria, Germany, Portugal and Italy all due to issue bonds. We expect supply of E30.3bln, with potential for more from further syndications.

• Belgium will launch a new 10-year OLO via syndication in the "near future" with the bond set to mature on 22 October 2031. We expect an issue size of E6-8bln.
• Tuesday will see the Netherlands come to the market with E1-2bln of the 0% Jan-52 DSL on offer.
• Tuesday will also see Austria look to sell E1.38bln of the 0% Feb-30 RAGB and the 0.75% May-51 RAGB.
• Germany is set to sell both linkers and nominals. On Tuesday the 0.50% Apr-30 iBund will be on offer for E400mln and the 0.10% Apr-46 iBund for E200mln. Germany will return to the market to launch the new Apr-26 Bobl on Wednesday.
• Portugal will come to the market on Wednesday, too, looking to sell E1.00-1.25bln of OT. On offer are the 0.475% Oct-30 OT and the 0.90% Oct-35 OT.
• Italy will round off issuance for the week with E7.75-9.25bln of M/T and L/T BTPs. The new 7-year 0.25% Mar-28 BTP will be launched for E4.0-4.5bln. The 0% Jan-24 BTP will be reopened for E2.25-2.75bln and the 1.70% Sep-51 BTP for E1.5-2.0bln.
• Recap:
  • On Monday, the EFSF sold E5bln through a dual tranche syndication. It sold E3bln of the new 0% Jan-31 and E2bln of the new 0.05% Jan-52.

CASH FLOWS: There are no meaningful redemptions and E4.0bln of coupons due (E3.6bln from the Netherlands and E0.4bln from Italy). This leaves net flows for the week of E26.3bln. Last week saw supply of E45.5bln and net flows of E20.8bln.

For full details see here.