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EGB Supply For W/C Nov 8, 2021 (2/2)

EUROZONE ISSUANCE
  • This morning will see Italy come to the market to sell 3/7-year BTPs: E1.5-2.0bln of the 3-year 0% Aug-24 BTP and E3.25-3.75bln of the new 7-year 0.45% Feb-29 BTP. The MEF has confirmed that due to the high cash balance, a longer dated BTP will not be on offer this week.
  • Ireland will also come to the market today to sell up to E1bln combined of the 7-year 0.90% May-28 IGB an the 1.35% Mar-31 Green IGB.
  • Italy will launch its fourth BTP Futura this week to retail only clients with a 12-year maturity (Nov-33). Books opened Monday and close lunchtime today. As of yesterday's close, books totalled E3.04bln through the first four days: E957.8mln on day 1, E1,008.7mln on day 2, E703.9mln on day 3 and E367.1mln on day 4. Books are much smaller at this stage than the previous BTP Futuras which have all seen books end over E5bln.

NET NOMINAL FLOWS: There are only negligible redemptions and coupons in the upcoming week, so we look for we look for net nominal flows for the week of positive E18.6bln vs last week's negative E27.9bln.

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

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