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EGB Supply For W/C Sep 20, 2021: Upcoming

EUROZONE ISSUANCE

Germany, Portugal and Italy are still scheduled to come to the market this week. We look for a further E6.0bln of issuance to leave gross nominal issuance for the week at E10.3bln, sharply down from last week's E44.8bln.

  • Germany will return to the market this morning with E2.5bln of the 15-year 0% May-36 Bund on offer.
  • Portugal will hold an exchange auction today. The IGCP will look to sell the 2.125% Oct-28 OT and the 2.25% Apr-34 OT while it will look to buyback the 2.20% Oct-22 OT and the 5.65% Feb-24 OT.
  • On Friday, Italy will look to sell E2.0-2.5bln of the 0% Jan-24 BTP Short Term and E0.75-1.00bln of the 0.40% May-30 BTPei.

NET NOMINAL FLOWS: There is a single redemption this week: E5bln of an EU EFSM bond originally issued as a 10-year. There are E0.4bln of coupon payments. With estimated gross nominal issuance of E10.3bln, we look for net nominal issuance of E4.9bln (down from E8.3bln last week).

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

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