EGB Supply For W/C Jan 17, 2021: Upcoming

Spain and France are all still due to hold auctions this week. We look for a further E16.9bln gross nominal issuance this week, which would bring the weekly total to E39.8bln, marginally higher than last week's E39.2bln.

• This morning will see Spain kick off issuance with the 5-year 0% Jan-27 Bono on offer alongside off-the-run Olblis: the 8-year 0.50% Apr-30 Obli and the 18-year 1.20% Oct-40 Obli. E4-5bln will be on offer.
• France will then look to sell E9.5-10.5bln of MT OATs: the new 3-year 0% Feb-25, the 5-year 0% Feb-27 and the off-the-run 7-year 0.75% Nov-28
• France will then return to the market to conclude the week's issuance later today, selling E1.25-1.75bln of linkers: the 0.10% Mar-26 OATei, the 0.10% Jul-31 OATei and the 0.10% Mar-32 OATi.

NET NOMINAL FLOWS: This week sees E19.9bln of redemptions: E15.4bln of a 10-year DSL and E4.5bln of a 3-year ESM bond. There are also E4.7bln of coupon payments (of which E3.9bln are Portuguese). With gross nominal issuance of E39.8bln, that leaves net flows for the week at positive E15.2bln ( down from positive E40.2bln last week).

For a calendar of all announced EGB/EU/ESM/EFSF auctions see the MNI EZ/UK Bond Supply Calendar here.