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EGB Supply - W/C 22 July, 2024 (2/2)

EUROZONE ISSUANCE
  • On Thursday, Italy will conclude issuance for the week by holding a BTP Short Term and BTPei auction. We think that there is a good chance that the new BTP Short Term maturing 28 August 2026 will be launched. Details will be announced Monday 22 July.
  • We think there is a chance that Italy chooses to hold a syndication (following this week’s buyback), potentially to launch the new 10-year BTP with a maturity date of 1 February 2035. If there is a syndication, we pencil in a size of around E10bln.
NET NOMINAL FLOWS: The week ahead sees one large redemption: E19.28bln from a formerly 10-year French OATei. Coupon payments for the week are E6.7bln, of which E6.2bln are French, E0.3bln are Portuguese, and E0.1bln are Greek. This leaves estimated net flows for the week at negative E9.2bln versus negative E5.5bln this week.

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