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EGB Supply - Rest of Week

EUROZONE ISSUANCE
  • Germany will return to the market on Wednesday with a 15-year Bund auction. On offer will be E1.5bln of the on-the-run 1.00% May-38 Bund (ISIN: DE0001102598) alongside E500mln of the 2.50% Aug-46 Bund (ISIN: DE0001102341).
  • Also on Wednesday, Portugal will look to sell a combined E1.5-1.75bln of 5/20-year OTs: the on-the-run 5-year 2.125% Oct-28 OT (ISIN: PTOTEVOE0018), the on-the-run 20-year 1.15% Apr-42 OT (ISIN: PTOTEPOE0032) and the off-the-run 20-year 4.10% Feb-45 OT (ISIN: PTOTEBOE0020).
  • On Thursday, Italy will come to the market for a BTP Short Term and 5/15-year BTPei auction. On offer will be E2.0-2.5bln of the 3.60% Sep-25 BTP Short Term (ISIN: IT0005557084), E0.5-1.0bln of the 1.50% May-29 BTPei (ISIN: IT0005543803) and E0.75-1.50bln of the 2.40% May-39 BTPei (ISIN: IT0005547812).
  • Greece will potentially hold a syndication in the week, with a launch of a new 10-year GGB most likely. Issue sizes over past few years have generally been E3.0-3.5bln, but given the strong demand at other EGB syndications recently, we see a chance that this deal is potentially upsized. Note that if Greece is to come to the market this week, we would expect to need the mandate to be announced today. It's unlikely the transaction would take place on Thursday (ECB meeting) or Friday.

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