EGB Supply for W/C Jan 4th, 2021

Italy, France, Germany, Spain, Ireland and Slovenia have issued bonds this week. We estimate E43.5bln of supply this week.

• RECAP:
  • Three countries held syndicated sales on Tuesday:
    • Italy sold E10bln of a new long 15-year 0.95% Mar-37 BTP.
    • Ireland launched a new long 10-year benchmark for E5.5bln, 0% Oct-31.
    • Slovenia held a dual tranche syndication, launching a new 10-year 0% Feb-31 benchmark for E1.75bln and re-opening the 30-year 0.4875% Oct-50 for E250mln.
  • Germany held the first two EGB auction of 2021, with E4.84bln of the 0% Dec-22 Schatz allotted on Tuesday and E4.12bln of the new 0% Feb-31 Bund on Wednesday.
  • On Thursday, Spain sold E5.54bln of nominal Bonos/Oblis vs a 5-6bln target and E486mln of EbliEi. E2.583bln of the new 0% May-24 Bono, E1.033bln of the 0% Jan-26 Bono, E1.923bln of 1.00% Oct-50 Obli and E0.486bln of the 0.70%% Nov-33 ObliEi
  • Also on Thursday, France concluded issuance for the week with E10.995bln of L/T OATs, the top end of the E9.5-11.0bln target. E4.998bln of the 0% Nov-30 OAT, E2.999bln of the 0.50% May-40 OAT and E2.998bln of the 0.75% May-52 OAT.
• CASH FLOWS: E19.1bln of redemptions (of which E19.0bln are a maturing Bund) and E5.7bln of coupons (again almost exclusively from Germany) will see net flows excluding syndications for the week of E18.7bln. The prior week saw no issuance with small coupon and redemption payments totaling E0.8bln.

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