EGB Supply - W/C 2 September, 2024 (1/2)

Austria, Germany, Spain, France and Belgium will look to hold auctions in the upcoming week, while the ESM will hold a syndication. We pencil in estimated gross issuance for the week at E28.5bln, down from E31.2bln this week.

• The ESM has sent an RfP for an upcoming transaction. We expect a EUR-denominated syndication to be held either Tuesday or Wednesday with E2.0bln WNG sold (and a small outside change of a larger – potentially up to the remaining E4.0bln funding need for the remainder of the year), and look for either a 2-year, 5-year or possibly 10-year maturity.
• On Tuesday, Austria will kick off issuance for the week by holding a RAGB auction, on offer will be a combined E1.4375bln of the on-the-run 10-year 2.90% Feb-34 RAGB (ISIN: AT0000A39UW5) and the 1.50% Nov-86 RAGB (ISIN: AT0000A1PEF7).
  • The second line is the RAGB that was proposed for a syndicated tap earlier this week but ultimately was not issued. The fact that it is being auctioned next week suggests that there is demand on the line, just not quite enough to go ahead with the syndicated tap.
• Also on Tuesday, Germany will sell E4.5bln of the 2.70% Sep-26 Schatz (ISIN: DE000BU22064).