EGB Supply: W/C 12 February, 2024 (3/3)

• Spain will come to the market on Thursday to hold a Bono/Olbi auction with the on-the-run 3-year 2.50% May-27 Bono (ISIN: ES0000012M77), the on-the-run 5-year 3.50% May-29 Bono (ISIN: ES0000012M51) and the off-the-run 9-year 2.35% Jul-33 Obli (ISIN: ES00000128Q6) on offer. The auction size will be announced this afternoon and we look for around E6.0-6.5bln to be sold.
• France will also come to the market on Thursday to hold a MT OAT auction with E10.5-12.0bln on offer. As expected the on-the-run 3-year 2.50% Sep-27 OAT (ISIN: FR001400NBC6) which was launched in January will be reopened alongside the on-the-run 5-year 2.75% Feb-29 OAT (ISIN: FR001400HI98). In addition, the off-the-run 8-year 0% Nov-31 OAT (ISIN: FR0014002WK3) will be on offer.
• France will conclude issuance for the week by returning to the market for an IL OAT auction E1.75-2.00bln of the following on offer: the 0.10% Mar-28 OATi (ISIN: FR0013238268), the 0.10% Mar-29 OATei (ISIN: FR0013410552), the 3.15% Jul-32 OATei (ISIN: FR0000188799) and the 0.10% Jul-53 OATei (ISIN: FR0014008181).

NET NOMINAL FLOWS: This week sees E42.3bln of redemptions: E22.5bln from a formerly 10-year Bund, E6.0bln from a formerly 10-year OT and E13.8bln from a formerly 7-year CCTeu. Coupons for the week sum to E3.7bln including E2.0bln German, E0.9bln Portuguese and E0.4bln Italian. This leaves estimated net flows for the week at negative E9.0bln, compared to positive E33.6bln last week.

For the full MNI EGB Issuance, Redemption and Cash Flow Matrix see the full PDF here.