EGB Supply W/C 5 June, 2023 (1/2)

The EU, Italy, Austria, Germany, Ireland and potentially Spain all look to issue this week. We pencil in gross nominal issuance of E20.6bln excluding retail operations, down from E36.7bln last week.

• The EU is scheduled to hold a syndication in the W/C 5 June. We don’t have a strong conviction on what maturity will be on offer.
• The W/C 5 June will also see the launch of Italy’s inaugural retail only 4-year BTP Valore (ISIN: IT0005547390). The issue will pay semi-annual step coupons – a minimum of 3.25% in the first two years and a minimum of 4.00% in years three and four. There will also be an extra bonus of 0.5% for investors who hold the bond for the full term.
• We also pencil in a Spain syndication for this week with a new 10-year Oct-33 Obli due to be launched some time in June. We look for a transaction size of E10-15bln.
• Austria will kick off auctions for the week tomorrow with a combined E1.495bln on offer of the on-the-run 10-year 2.90% Feb-33 RAGB (ISIN: AT0000A324S8) and the 0.25% Oct-36 RAGB (ISIN: AT0000A2T198) on offer.
• Germany will also come to the market on Tuesday for an Index-linked Bund auction. E400mln of the 0.10% Apr-33 ILB (ISIN: DE0001030583) will be on offer alongside E200mln of the 0.10% Apr-46 ILB (ISIN: DE0001030575).