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EGB Supply For W/C Jan 31, 2021

EUROZONE ISSUANCE

Germany, Italy, Spain, France and Belgium are all scheduled to sell bonds this week. We look for E28.0bln of gross nominal issuance, down a little from last week's E28.5bln.

  • Germany kicked off issuance on Tuesday, allotting E4.846bln of its new 0% Mar-24 Schatz. Issuance volumes were E6bln and this was the first technically uncovered Schatz auction since September.
  • Italy has released a mandate for a new long 10-year BTPei maturing May-33. We look for a transaction size of E4-5bln.
  • Spain will come to the market tomorrow. A new 3-year 0% May-25 Bono will be launched, alongside a reopening of the benchmark 10-year 0.70% Apr-32 Obli, the 15-year 4.20% Jan-37 Obli and the 0.65% Nov-27 Obli-Ei. E5-6bln nominals will be on offer alongside E250-750mln of the linker.
  • Also tomorrow, France will come to the market to sell E10.5-11.5bln of LT / Green OATs on offer: the off-the-run 0% Nov-30 OAT, the 10-year 0% May-32 OAT, the 30-year 0.75% May-53 OAT and the 0.50% Jun-44 Green OAT.
  • Belgium will look to conclude issuance on Friday with E500mln available through an ORI operation, with details to be confirmed tomorrow afternoon.

NET NOMINAL FLOWS: This week sees a E23.2bln Spanish redemption, USD1.5bln of a Lithuanian bond and E3.0bln EFSF bond all due to mature. Coupons for the week are estimated at E11.0bln. With estimated gross nominal issuance of E28.0bln, that leaves net flows for the week at negative E10.5bln (from positive E28.0bln last week).

For more see the MNI Issuance, Redemption and Cash Flow Matrix here.

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