EGB Supply For W/C Jan 24, 2021

Finland, Italy and Germany are still due issue this week and we look for a further E19.8bln of issuance this week while the EU, France and the Netherlands have already issued E7.5bln. We look for a total E27.2bln of gross nominal issuance, down from E44.0bln last week.

• The EU kicked off issuance Monday by selling E2.499bln of the 0.40% Feb-37 Green bond at auction.
• On Tuesday, France launched its new 30-year 0.10% Jul-53 OATei via syndication for E3bln.
• Also Tuesday, the Netherlands sold E1.985bln of the 30-year 0% Jan-52 DSL at auction, the top of the target range.
• Finland will look to come to the market, most likely today, to launch a new long 20-year Apr-43 RFGB via syndication. The transaction size has been set at E3bln WNG.
• This morning, Italy will look to launch the new 0% Nov-23 BTP Short Term for E3.25-3.75bln. Also on offer will be two BTPeis for a combined total of E0.75-1.00bln: the 5-year 0.65% May-26 BTPei and the 20-year 2.55% Sep41 BTPei.
• Also Wednesday, Germany will look to reopen its 10-year Bund for E4bln.
• Italy will return to the market Friday with on-the-run benchmarks to be tappged: E2.5-3.0bln of the 5-year 0% Aug-26 BTP, E3.0-3.5bln of the 10-year 0.95% Jun-32 BTP and E1.0-1.5bln of the Apr-29 CCTeu.

NET NOMINAL FLOWS: This week sees redemptions and coupons sum to just E0.5bln. With estimated gross nominal issuance of E27.2bln, that leaves net flows for the week at positive E26.7bln (up from positive E19.5bln last week).

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