EGB Supply For W/C Sep 27, 2021

The EU, Belgium, the Netherlands, Italy and Germany have all issued bonds this week. Total gross nominal issuance has been E22.1bln this week, up from E10.3bln last week.

• The EU held its inaugural bond issuance on Monday. It sold E2.495bln of the 0% Jul-26 EU NGEU against a target of E2.0-2.5bln.
• Belgium sold E3.502bln of 10/15/30-year OLOs against a target of E3.0-3.5bln (with a further E674mln sold through the non-competitive round. Including both rounds: E1.776bln of the 0% Oct-31 OLO, E1.456bln of the 1.45% Jun-37 OLO and E944mln of the 1.70% Jun-50 OLO.
• On Tuesday, the Netherlands launched its new 7-year 0% Jan-29 DSL via conventional auction, selling E4.915bln against a target of E3-5bln.
• Italy sold E6.25bln BTP/CCTeu on Wednesday (the top of the target range) and a further E262mln of the CCTeu in the second round: E2.0bln of the 0% Aug-26 BTP, E2.5bln of the 0.95% Dec-31 BTP and E1.75bln (E2.013bln including second round) of the 0.50% Apr-26 CCTeu.
• Germany rounded off issuance for the month, allotting E3.052bln of the 10-year 0% Aug-31 Bund in a weak auction with total issuance of E4.0bln.

NET NOMINAL FLOWS: There was a single redemption this week: E15.2bln of the 4.25% Sep-21 Belgian OLO which originally had a 10-year maturity. There are also E2.0bln of coupon payments (of which E1.3bln are Belgian). With gross nominal issuance of E22.1bln, net nominal issuance was E4.9bln (in line with the E5.0bln seen last week).

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