EGB Supply For W/C Mar 21, 2022 (2/2)

• The EU will hold a syndication today with a new 10-year Jul-32 NGEU bond on offer and a new 15-year E2.17bln WNG Jun-37 SURE bond on offer. Assuming all the NGEU auctions are for E2.5bln (as they have been so far), there is a target of E30bln to be raised over the four remaining NGEU syndications in H1-22. The last 10-year NGEU was the inaugural NGEU issue and saw E20bln sold, but a similar size would unlikely see enough for three more syndications (unless one was cancelled which we don't forsee at this point). So we pencil in E8-12bln with upside risks.
• Today, the Netherlands will come to the market with E1.5-2.5bln of the 0.75% Jul-28 DSL (ISIN: NL0012818504) on offer.
• Germany will also come to the market this morning to sell E4.0bln of the 0% Apr-27 Bobl (ISIN: DE0001141851).
• Italy will conclude Eurozone bond issuance for the week on Friday. Auction details will be announced this afternoon but we would expect a reopening of the 0% Jan-24 BTP Short Term alongside a BTPei.

NET NOMINAL FLOWS: The week ahead sees redemptions from Latvia, Lithuania, Luxembourg and Slovenia totalling E2.9bln, and coupons payments of E0.8bln. With estimated gross nominal issuance of E24.9bln, net flows for this week are estimated at positive E21.2bln (following negative flows of positive E15.9bln last week).

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