EGB Supply: W/C 20 Nov, 2023 (2/2)
- Wednesday will see Germany return to the market to hold a 15-year Bund auction. On offer will be E500mln of the off-the-run 0% May-35 Bund (ISIN: DE0001102515) alongside E1bln of the on-the-run 1.00% May-38 Bund (ISIN: DE0001102598).
- On Friday, Italy will conclude issuance for the week with a BTP Short Term / BTPei auction. We look for a reopening of the 3.60% Sep-25 BTP Short Term (ISIN: IT0005557084) for E2.0-2.5bln. We don’t have a strong conviction regarding the BTPei that will be on offer. Details will be announced on Tuesday. However, we note that this could also be the last BTP-ST/BTPei auction of the year with the MEF often cancelling the auction that is scheduled between Christmas and New Year.
NET NOMINAL FLOWS: This week sees redemptions of E10.4bln – E6.3bln of a formerly 6-year BTP Italia and E4.0bln of a formerly 10-year ESM-bond while coupon payments for the week are E0.5bln. This leaves net flows for the week close to flat at an estimated negative E0.1bln, down from positive E26.9bln last week.