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EGB Supply For W/C Nov 22, 2021

EUROZONE ISSUANCE

This week will see issuance from Belgium, the Netherlands, Germany and Italy (and an outside chance of Portugal). MNI estimates gross issuance for the week at E11.2bln, down from last week's E16.6bln.

  • Belgium kicked off issuance for the week on Monday, selling E3.2bln of 10/20/50-year OLOs (the top of the target range): E1.531bln of the 1.00% Jun-31 OLO, E1.134bln of the 0.40% Jun-40 OLO and E535mln of the 0.65% Jun-71 OLO.
  • The Netherlands will come to the market this morning to sell E2-3bln of the 7-year 0% Jan-29 DSL.
  • Tomorrow, Germany will look to sell E2bln of the 15-year 0% May-36 Bund.
  • Portugal could also potentially come to the market tomorrow with an exchange auction (which would be confirmed by an announcement today).
  • Italy will conclude issuance for the week on Thursday by selling E1.75-2.25bln of the 0% Jan-24 BTP Short Term and E0.75-1.00bln of the 0.40% May-30 BTPei (both on the run issues).

NET NOMINAL FLOWS: There are no redemptions and E2.4bln of coupons in the upcoming week (E1.5bln of which are French), so we look for net nominal flows for the week of positive E8.8bln vs last week's positive E15.9bln.

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