RBC notes that one big support........>

EUROZONE VIEW: RBC notes that one big support factor for EGBs is just about to

kick in: ECB reinvestment flows.

- "As a reminder, the ECB, despite having scaled down their net asset purchases

to EUR 30bn per month at the beginning of the year, has pledged to re-invest any

bonds falling due. This implies that gross investment flows will remain sizeable

during months of high redemption in particular. The latter is just about to

become important," wrote RBC.

- RBC notes that whilst redemptions were rather minor for the last couple of

months, starting with April, the numbers increase substantially. 

- "In April alone, the ECB reports to have approx. EUR 22.6bn of redemptions to

be put back into the market. The aggregated amount over the coming four months

is just over EUR 56bn in the PSPP alone and up to EUR 67bn in all four

programmes. This implies that the gross amount to be invested will range between

EUR 38bn-55bn over the coming four months (average 47bn) ie not too much smaller

than last year's EUR 60bn," wrote RBC.