EGB Supply for W/C Jan 11

This week is another busy week for issuance with the EFSF, Belgium, the Netherlands, Austria, Germany, Portugal, Spain and Italy all due to issue bonds. We expect supply of E41.3bln.

• Spain has announced that it will launch a new 10-year Apr-31 Obli via syndication in the "near future". We expect this today with an issue size of E10-15bln.
• Germany will return to the market today to launch the new Apr-26 Bobl.
• Portugal will also come to the market today, 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 on Thursday 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.
  • On Tuesday, Belgium launched a new 10-year 0% Oct-31 OLO via syndication for E6bln.
  • Tuesday's first auction saw the Netherlands sell E1.885bln of the 0% Jan-52 DSL against a target of E1-2bln.
  • Tuesday also saw Austria sell E1.38bln of 10/15 year RAGBs: E747.5mln of the 0% Feb-30 RAGB and E632.5mln of the 0.75% May-51 RAGB.
  • Germany concluded Tuesday's auctions allotting E443mln of linkers: E330mln of the 0.50% Apr-30 iBund and E113mln of the 0.10% Apr-46 iBund.

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 E37.3bln. Last week saw supply of E45.5bln and net flows of E20.8bln.

For full details see here.