***There is still a week to go in.........>

EGB FLOWS: ***There is still a week to go in January but to make an EGB supply

comparison between 2017 and 2018 after the massive E10bln Spanish 10Y deal:

- Nominal January supply. E101bln in 2017, E87bln in 2018

- Bund contract equivalents: 727k in 2017, 606k in 2018.

- In terms of scheduled supply remaining in January 2018, Italy issues CTZs and

linkers on Friday and has a M/L term auction on 30th. Additionally, Germany is

scheduled to sell E4bln Obls. Naturally, there is still possible supply from

syndications and Finland may yet react to the very strong Spanish order book.

- In short, its looking like 2018 January supply will slightly larger than 2017.

- For the entire year, we are estimating around E850bln of bond supply in 2018,

compared to E895bln nominal (920bln in cash terms) in 2017.

- Hence, it appears that European governments are doing a better job of

front-loading supply to January than last year i.e. more favourable supply for

the remaining 11 months of the year.