EGB Supply For W/C Mar 28, 2022

The EU, EFSF and Italy came to market, for gross nominal issuance of E12.0bln, down from E35.2bln last week. Belgium is due to hold an ORI operation for E500mln to conclude issuance for the week today.

• The EU kicked off issuance for the week on Monday, reopening E2.498bln of the 7-year 0% Oct-28 EU NGEU bond (ISIN: EU000A3KWCF4) via auction.
• The EFSF held a syndication on Tuesday to launch its new 0.875% Sep-28 bond (ISIN: EU000A2SCAB4) for E3bln (in the middle of the E2-4bln range we had expected.
• Portugal held a reverse auction on Tuesday to buy back E431mln nominal of the 2.20% Oct-22 OT (ISIN: PTOTESOE0013).
• Italy came to the market on Wednesday and sold E6.5bln (top of the target range) of 5/10-year BTPs: E3.0bln of the 5-year 1.10% Apr-27 BTP (ISIN: IT0005484552 ) and E3.5bln of the 10-year 0.95% Jun-32 BTP (ISIN: IT0005466013 ). As we had expected, the CCTeu auction was cancelled following the recent syndication.
• Belgium will hold an ORI operation today for up to E500mln combined of the 4.00% Mar-32 OLO (ISIN: BE0000326356) and the 2.25% Jun-57 OLO (ISIN: BE0000343526).

NET NOMINAL FLOWS: There are two notable upcoming redemptions: a Belgian OLO originally issued as in 2006 with a 15-year maturity for E12.9bln as well as a formerly 5-year Italian BTP for E16.7bln. Coupon payments are expected to come in at E5.1bln (with E4.2bln from Finland). Together with the Portugal buyback, this leaves net flows for the week at negative E22.6bln (down from positive E31.5bln last week).

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