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EGB Supply W/C October 31, 2022

EUROZONE ISSUANCE

Germany, Spain, France and Belgium will all look to issue bonds this week. We look for estimated gross nominal issuance of E17.0bln from announced operations, down from last week’s E23.6bln.

  • Germany will kick off issuance on Tuesday with E500mln of linkers on offer: E300mln of the 0.10% Apr-33 ILB (ISIN: DE0001030583) and E200mln of the 0.10% Apr-46 ILB (ISIN: DE0001030575).
  • Germany will return to the market on Wednesday with E1bln of the 0% Aug-31 Green Bund (ISIN: DE0001030732) on offer.
  • On Thursday, Spain will look to reopen the 0% Jan-27 Bono, the 1.00% Nov-30 Obli-Ei, the 2.55% Oct-32 Obli and the 1.00% Jul-42 Green Obli. The auction size will be confirmed on Monday.
  • Also Thursday, France will look to sell a combined E9-10bln of LT OATs. On offer will be: the 2.00% Nov-32 OAT, the 1.25% May-36 OAT and the 0.75% May-53 OAT.
  • Belgium will conclude Eurozone issuance for the week on Friday with a E500mln ORI operation. OLOs on offer will be confirmed on Thursday.

NET NOMINAL FLOWS: The upcoming week will see redemptions totalling E41.9bln with E18.7bln of a Spanish Bono (originally 5-year), E20.2bln of an Italian BTP (originally 10-year) and USD3bln of an ESM USD-bond. Coupon payments will be E12.4bln (of which E7.3bln will be Austrian and E4.6bln Italian). With estimated gross issuance of E17.0bln, MNI estimates net nominal issuance of negative E37.3bln in the week ahead, down from last week’s negative E23.5bln.

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