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EGB Supply For W/C Nov 1, 2021

EUROZONE ISSUANCE

This week will see issuance from Austria, Germany, Spain, and France. MNI estimates gross issuance for the week at E20.3bln, down from last week's E20.6bln.

  • Austria will begin the week of issuance this morning, selling E690mln of the 0.25% Oct-36 RAGB.
  • Also this morning, Germany will sell E400mln of the 0.50% Apr-30 lnflation-linked Bund and E400mln of the 0.10% Apr-33 lnflation-linked Bund.
  • Germany returns tomorrow, selling E4bln of 0.00% Oct-26 Bobl.
  • On Thursday, Spain comes to market, to sell E3.5-4.5bln of nominal 7/10/25-year Oblis (0% Jan-28 Obli, 0.50% Oct-31 Obli and 2.90% Oct-46 Obli) as well as E0.5-1.5bln of the 1.00% Nov-30 Obli-Ei.
  • France concludes the week of issuance on Thursday, selling between E9-10bln combined of the following: 0.00% Nov-31 OAT, 1.75% Jun-39 Green OAT, and 0.75% May-53 OAT.

NET NOMINAL FLOWS: There are redemptions of E34.8bln due in the upcoming week: E20.9bln of a Spanish Bono with an original maturity of 3-years and E13.9bln of an Italian BTP with an original maturity of 5-years. Furthermore there are also E11.6bln of coupon payments due (mostly Spanish and Italian). With E20.3bln of estimated gross nominal issuance, we look for net nominal flows for the week of negative E26.1bln vs last week's negative E27.2bln.

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