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EGB Supply - W/C January 30, 2023 (1/2)

EUROZONE ISSUANCE

The EU, Italy, Germany, Spain, France and Belgium are all due to come to the market this week. We look for gross nominal issuance at first round operations of E42.5bln for these deals, up from last week’s E32.0bln.

  • Today, the EU will kick off issuance for the week with an auction of 5/10-year EU-bonds. On offer will be up to E2bln of the 2.00% Oct-27 EU-bond (ISIN: EU000A3K4DS6) and up to E2bln of the 1.00% Jul-32 EU-bond (ISIN: EU000A3K4DD8).
  • Tomorrow, Italy will come to the market with the on-the-run 5/10-year BTPs and the on-the-run CCTeu on offer: E3.5-4.0bln of the 3.40% Apr-28 BTP (ISIN: IT0005521981), E3.0-3.5bln of the 4.4% May-33 BTP (ISIN: IT0005518128) and E1.0-1.5bln of the 0.50% Apr-26 CCTeu (ISIN: IT0005428617).
  • Also tomorrow, Germany will conclude January’s issuance with E6bln of the new Mar-25 Schatz (ISIN: DE000BU22007) on offer. The coupon will be announced on Monday but based on current market pricing is likely to be around 2.50% - higher than the 2.20% seen on the Dec-24 issue.
  • Germany will then return to the market on Wednesday to kick off February issuance with E5bln of the 10-year 2.30% Feb-33 Bund (ISIN: DE000BU2Z007) on offer.

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