EGB Supply For W/C Jan 31, 2021

Germany, Italy, Spain, France and Belgium are all scheduled to sell bonds this week. We look for E29.0bln of gross nominal issuance, up 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 launched a new long 10-year 0.10% May-33 BTPei yesterday via syndication for E5bln.
• Spain will come to the market this morning. 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 this morning, 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 tomorrow with E500mln available through an ORI operation, with details to be confirmed this 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 E29.0bln, that leaves net flows for the week at negative E9.5bln (from positive E28.0bln last week).

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