EGB Supply For W/C July 18, 2022

Spain and France will both look to sell bonds today while Belgium and Germany have already held auctions this week. We look for estimated gross nominal issuance of E26.2bln, slightly higher than this week’s E24.8bln sold.

• Belgium kicked off issuance on Monday selling E3.652bln of 5/10/30-year OLOs against a target of E2.7-3.7bln: E931mln of the 0% Oct-27 OLO (ISIN: BE0000351602), E1.604bln of the 0.35% Jun-32 OLO (ISIN: BE0000354630) and E1.117bln of the 1.40% Jul-53 OLO (ISIN: BE0000355645).
• On Tuesday, Germany sold E4bln (E2.684bln allotted) of the 1.30% Oct-27 Bobl (ISIN: DE0001141869).
• Germany returned to the market yesterday to sell E1.5bln (E1.282bln allotted) of the 0% Aug-30 Green Bund (ISIN: DE0001030708).
• This morning, Spain will look to sell E4.5-5.5bln of on-the-run 3/5-year Bonos and the 10-year Obli. On offer will be the 0% May-25 Bono (ISIN: ES0000012K38), the 0% Jan-27 Bono (ISIN: ES0000012J15) and the 2.55% Oct-32 Obli (ISIN: ES0000012K61).
• Also today, France will look to sell E9.5-10.5bln of MT OATs. On offer will be the 0% Feb-25 OAT (ISIN: FR0014007TY9), the 0.75% Feb-28 OAT (ISIN: FR001400AIN5) and the 0.75% May-28 OAT (ISIN: FR0013286192).
• Concluding the week’s issuance France will return to the market later today to sell E1.0-1.5bln of inflation-linked OATs On offer will be the 0.10% Mar-28 OATi (ISIN: FR0013238268), the 0.10% Jul-31 OATei (ISIN: FR0014001N38) and the 0.10% Jul-53 OATei (ISIN: FR0014008181)

NET NOMINAL FLOWS: This week sees no redemptions and coupon payments of just E0.4bln. Together with estimated gross issuance of E26.2bln, MNI estimates net nominal issuance of positive E25.8bln this week, versus last week’s negative E6.6bln.

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