EUROZONE ISSUANCE: EGB Supply

The Netherlands, Germany, Italy, and Ireland look to hold auctions, whilst the EU and Italy will hold syndications this week. There is also an outside possibility of a Spanish syndication (although we think that with the ECB meeting in the week ahead that this will come later). We pencil in estimated gross issuance for the week at E27.8bln, down from E31.8bln last week.

• Yesterday, the EU announced a dual-tranche mandate to launch a new long 7-year EU bond maturing 4 December 2031 and tap of the green EU 3.250% bond maturing 4 February 2050 (ISIN: EU000A3K4EU0). The transaction will be launched later today, subject to market conditions. MNI pencil in E5-6bln for the new 7-year and E3-4bln for the 2050 green tap.
• Also yesterday, Italy announced a mandate to launch a new syndicated 30-year nominal BTP maturing 1st October 2054. MNI expect the transaction to take place today and look for a E5bln transaction size. We had highlighted the possibility of an Italian syndication, possibly as soon as this week, in the EGB Issuance, Redemption and Cash Flow Matrix.
• Today, the Netherlands will kick off conventional auctions for the week, selling E1.5-2.0bln of the 0% Jan-52 DSL (ISIN: NL0015614579).
• Finally today, Germany will come to the market to hold a Green auction. On offer will be E500mln of the 2.10% Apr-29 Green Bobl (ISIN: DE000BU35025) alongside a further E500mln of the 0% Aug-50 Green Bund (ISIN: DE0001030724).

For more details on issuance this week and next week see the full document here: EZ240910.pdf