The EU and Germany have already issued this week for a total of E6.5bln, with Italy to complete issuance for the week today. We look for estimated gross nominal issuance of E13.5bln, down from the E17.7bln (ex retail BTP Italia) sold last week.
- The EU kicked off issuance for the week on Monday, selling E2.494bln (vs E2.5bln target) of the 4-year 0% Jul-26 EU NGEU (ISIN: EU000A3KTGV8).
- On Tuesday, Germany launched its new 1.30% Oct-27 Bobl (ISIN: DE0001141869). E4bln was issued, with E3.235bln allotted.
- Today, Italy will look to sell 5/10-year BTPs and CCTeu. E3.5-4.0bln of the new 2.65% Dec-27 BTP (ISIN: TBA), E1.5-2.0bln of the 2.50% Dec-32 BTP (ISIN: IT0005494239) and E0.75-1.0bln of the 0.65% Apr-29 CCTeu (ISIN: IT0005451361).
NET NOMINAL FLOWS: There is only a negligible redemption of E0.1bln with coupon payments of E1.1bln due. Together with estimated gross nominal issuance of E13.5bln, this leaves estimated net flows for this week at a positive E12.3bln (in line with last week’s positive E13.5bln ex BTP Italia retail).
For a calendar of all announced EGB/EU/ESM/EFSF auctions see the MNI EZ/UK Bond Supply Calendar here.