Following a spate of...........>

MONTH-END EXTENSIONS: Following a spate of long-end syndicated issuance in

January the EGB month-end extension is now looking larger. According to Mizuho,

the index is set to rise by 0.11 years, almost double the 0.05Y average from the

past 6 months. 

- Spain is a stand-out at 0.28Y and the Netherland's index rises by 0.33Y.

- Suggested extensions from Mizuho include "extending out of SPGB 4.6% Jul19

into 1.4% Jan20. Though only half a year in width, the extension compares

favourably to the equivalent expression on the Italian curve"

- Even Germany will see a sizeable 0.14Y extension and Mizuho recommend selling

the "rich DBR 1.75% Jul22, which currently trades 2.3bp rich to our fitted

curve. We find the extension into May23 to be at an attractive level relative to

France and the Netherlands. This extension is 2.9bp too steep to our fitted

curve, carry neutral and rolls-down just 0.1bp/month".