EGB Supply For W/C July 25, 2022

Italy, Germany and the EU are due to sell bonds this week. We look for estimated gross nominal issuance of E16.3bln, down form last week’s E29.7bln sold.

• Italy kicked off issuance for the week yesterday selling E2.5bln of the 1.75% May-24 BTP Short Term (ISIN: IT0005499311) and E750mln of the 0.10% May-33 BTPei (ISIN: IT0005482994) and E500mln of the 2.55% Sep-41 BTPei (ISIN: IT0004545890).
• Germany will come to the market this morning to sell E4bln of the 1.70% Aug-32 Bund (ISIN: DE0001102606).
• Tomorrow, Italy will return to the market to sell 5/10-year BTPs and CCTeus. On offer will be the on-the-run the 5-year 2.65% Dec-27 BTP (ISIN: IT0005500068), the off-the-run 0.95% Jun-32 BTP (ISIN: IT0005466013), the on-the-run 2.50% Dec-32 BTP (ISIN: IT0005494239) and the on-the-run Oct-30 CCTeu (ISIN: IT0005491250).
• In addition, the EU has stated that it will look to raise E1.035bln via private placement for its MFA programme over coming days.

NET NOMINAL FLOWS: The week ahead sees the redemption of a France OATei originally issued as a long 10-year in 2010 for E24.8bln. In addition there are E6.5bln of coupon payments due – of which E6.1bln are French. Together with estimated gross issuance of E16.3bln, MNI estimates net nominal issuance of negative E15.0bln this week, versus last week’s positive E29.3bln.

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