EGB Supply For W/C Feb 7, 2021

The EU, Germany, Portugal and Italy are all scheduled to sell bonds this week. We look for E17.7bln of gross nominal issuance, down from E28.6bln last week.

• The EU is due to come to the market today to hold a dual-tranche syndicaiton. On offer will be a new short 5-year Oct-26 EFSM bond for E2.2bln WNG alongside a reopening of the 30-year 0.70% Jul-51 NGEU bond. For the latter we look for a tap of E4-6bln.
• Germany will kick off the week’s auctions this morning with E500mln of the 0.10% Apr-26 ILB and E200mln of the 0.10% Apr-46 ILB on offer.
• Germany will return to the market tomorrow to sell E1.50bln of the 30-year 0% Aug-50 Bund.
• Also tomorrow, Portugal will look to sell E1.00-1.25bln of the 7/10-year OTs: the 2.125% Oct-28 OT and the 0.30 Oct-31 OT.
• On Friday, Italy will come to the market to sell 3/7/15+ year BTPs. We expect the 0% Dec-24 BTP and the 0.45% Feb-29 BTP to both be reopened alongside a longer-term BTP. Details of the auction will be announced later today.

NET NOMINAL FLOWS: The week ahead sees negligible coupons and redemptions. With estimated gross nominal issuance of E17.7bln, net flows for the week are estimated at positive E17.6bln (from negative E9.9bln last week).

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