EGB Supply For W/C Jan 31, 2021

Germany, Italy, Spain, France and Belgium were all scheduled to sell bonds this week. We have seen E28.6bln of gross nominal issuance so far, almost unchanged 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 came to the market Thursday to sell E5.574bln of nominals and E525mln of linkers (both just over the mid-point of the target ranges). E2.763bln of the new 3-year 0% May-25 Bono was sold, alongside E2.240bln of the benchmark 10-year 0.70% Apr-32 Obli, E571mln of the 15-year 4.20% Jan-37 Obli and E525mln of the 0.65% Nov-27 Obli-Ei.
• Also Thursday, France sold E11.496bln of LT / Green OATs, the top of the target range: E3.296bln of the off-the-run 0% Nov-30 OAT, E3.435bln of the 10-year 0% May-32 OAT, E1.981bln of the 30-year 0.75% May-53 OAT and E2.784bln of the 0.50% Jun-44 Green OAT.
• Belgium did have an ORI operation scheduled for today which would normally be E500mln. However, we have not seen any confirmation of this (normally details of the OLOs on offer are announced the day before). We are awaiting confirmation from the BDA.

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 E28.6bln, that leaves net flows for the week at negative E9.9bln (from positive E28.0bln last week).

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