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(Z1) Double Bottom Reversal


Gilt/Bund spread 6.4bps tighter

###POV. In Finland, there is a....>

EUROZONE ISSUANCE: ###POV. In Finland, there is a E6bln Finnish government bond
redemption on 15 September. Many are expecting that Finland will use the
occasion to tap the market.
- Having launched a new 30Y in February but not having tapped a 10-Year this
year, it is likely that Finland will issue a new 10-Year to replace the rather
old 0.5% Apr-26. Indeed, in the recently released quarterly review it was
written "A second new euro benchmark bond for the year is foreseen to be issued
in the third quarter. The maturity is likely to be 10 years and the timing will
be subject to market conditions." So, there are few doubts. Typically, Finland
sells E3-4bln via an initial syndication.
- Finland's 2017 long term funding target is E16-17bln and MNI calculates that
it has sold 7.6bln nominal or E7.7bln in cash terms. As such, it would not be a
surprise if the Finns looked for a new 10-Year closer to E4bln.
- The Republic of Finland is also looking to do a USD-denominated
benchmark-sized issue under its EMTN programme once a year, which also has yet
to be done.