The first week of 2018 saw........>

EUROZONE ISSUANCE: The first week of 2018 saw E18.2bln EGB supply/150k Bund

contract equivalents, down from the 190k equivalents sold in the first week of

2017. This week, MNI sees E14.9bln of gross issuance but possible 10Y

syndications could come from Portugal, Spain or Belgium.

- ISSUANCE: On Tuesday, Germany sells E0.5bln of Bundei 0.1% 2046, Austria sells

E1.38bln of RAGBs 0.5% Apr-27 and 1.5% Apr-47 and the Netherlands sells

E1.5-2.5bln DSL 0% Jan-24. The highlight for the week will be E5.0bln of a new

10Y Bund, the Feb-28 on Wednesday. Scheduled issuance concludes with the

E2.5-3.0bln each of BTP 0.2% Oct-20 and BTP 1.45% Nov-24 on Thursday, MNI

expects around E9bln; announcement is Monday.

- CASH FLOWS: There are no redemptions or coupons this week so gross supply

equals net supply. The ECB PSPP is at a lower E30bln monthly pace alongside

reinvestment of redemptions, perhaps around E5bln per week.

**For full details, please see MNI Eurozone bond auction calendar, MNI Eurozone

Net Cash Flow Matrix: http://tinyurl.com/gkrtmav and MNI Eurozone Issuance

Profile: https://tinyurl.com/ybnzlygd