EGB Supply For W/C Feb 7, 2021

Italy are due to sell bonds this morning while the EU, Germany, Spain and Portugal have already come to the market this week. We look for E25.4bln of gross nominal issuance, down from E28.6bln last week.

• The EU kicked off the week's issuance with a dual-tranche syndication on Tuesday. It sold E2.2bln of a new short 5-year Oct-26 EFSM bond and reopened the 30-year 0.70% Jul-51 NGEU bond for E5bln.
• Germany kicked off the week’s auctions on Tuesday allotting E412.8mln of the 0.10% Apr-26 ILB and and E176.7mln of the 0.10% Apr-46 ILB.
• Spain came to the market Wednesday for its second syndication of 2022, selling E7bln of a new 30-year 1.90% Oct-52.
• Germany also returned to the market Wednesday allotting E1.266bln of the 30-year 0% Aug-50 Bund in a technically uncovered auction with an issuance volume of E1.5bln.
• Also Wednesday, Portugal sold E1.25bln of 7/10-year OTs, the top of its target range: E544mln of the 2.125% Oct-28 OT and E706mln of the 0.30 Oct-31 OT.
• This morning, Italy will come to the market to sell on-the-run 3/7/20 year BTPs: E2.5-3.0bln of the 0% Dec-24 BTP, E2.5-3.0bln of the 0.45% Feb-29 BTP and E1.25-1.75bln of the 1.80% Mar-41 BTP
  on offer.

NET NOMINAL FLOWS: This week sees negligible coupons and redemptions. With estimated gross nominal issuance of E25.4bln, net flows for the week are estimated at positive E25.3bln (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.