EGB Supply for W/C Jan 11

This week has been a busy week for issuance with the EFSF, Belgium, the Netherlands, Austria, Germany, Portugal and Spain having issued bonds and Italy due to come to the market today. We expect supply of E39.3bln.

• 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.
  • Germany returned to the market on Wednesday to launch the new Apr-26 Bobl. E4.066bln was allotted with an issuance volume of E5bln.
  • Portugal also came to the market on Wednesday, selling at the top of its target E1.00-1.25bln range of 10/15-year OTs. E500mln of the 0.475% Oct-30 OT and E750mln of the 0.90% Oct-35 OT.
  • On Wednesday, Spain also launched a new 10-year 0.10% Apr-31 Obli via syndication for E10bln.
  • Italy rounded off issuance for the week on Thursday selling at the top of the E7.75-9.25bln target range of M/T and L/T BTPs. The new 7-year 0.25% Mar-28 BTP was launched for E4.0-4.5bln, E2.75bln of the 0% Jan-24 BTP and E2.0bln of the 1.70% Sep-51 BTP were also sold.

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 E35.3bln. Last week saw supply of E45.5bln and net flows of E20.8bln.

For full details see here.