EUROZONE ISSUANCE: EGB Supply
Greece is due to hold a syndication and Italy an auction today. Already this week, the EU held its scheduled syndication and Germany and Portugal held conventional auctions. We look for estimated gross issuance for the week of E30.4bln, down from E47.3bln (ex-retail operations) last week.
For the full document including more details on issuance this week and next week click here.
- Greece has announced a mandate to hold a dual-tranche syndication (likely today) to tap the 4.375% Jul-38 GGB (ISIN GR0128017747) and the 4.125% Jun-54 GGB (ISIN GR0138018842). Greece has also announced a wwitch and tender offer for the 0% Feb-2026 GGB (ISIN: GR0114032577) and the 1.875% Jul-26 GGB (ISIN: GR0118019679).
- We pencil a size of E1-2bln for each line of the syndication, but we have very low conviction here. The PDMA’s funding plan was for E8bln for 2025 and already E4bln was issued in the 10-year syndication in January. There hasn’t been a dual-tranche GGB syndication since September 2021 (where E1.5bln of the 5-year and E1.0bln was sold of the 30-year).
- Also today, Italy will hold a 3/7/30-year BTP auction. On offer will be E3.5-4.0bln of the new 3-year 2.65% Jun-28 BTP (ISIN: IT0005641029) while in the 7-year area E1.25-1.50bln of the 4.00% Oct-31 BTP Green (ISIN: IT0005542359) will be sold alongside E0.75-1.25bln of the off-the-run 8-year 2.45% Sep-33 BTP (ISIN: IT0005240350). Alongside these E1.25-1.50bln of the on-the-run 30-year 4.30% Oct-54 BTP (ISIN: IT0005611741) will be on offer.
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EUROZONE ISSUANCE: EGB Supply (2/2)
- Tomorrow, Greece will hold a GGB auction. The details will be announced today. We note that Greece has reopened either a 5-year GGB or 10-year GGB at each of the last 16 auctions (every auction since July 2023).
- Also tomorrow, Germany will return to the market to hold a 30-year Bund auction. E1.5bln of the 0% Aug-50 Bund (ISIN: DE0001102481) will be on offer alongside E1bln of the 2.50% Aug-54 Bund (ISIN: DE000BU2D004).
- Portugal will hold an OT auction, also tomorrow, for E1.25-1.5bln. On offer will be the 2.25% Apr-34 OT (ISIN: PTOTEWOE0017), the 1.15% Apr-42 OT (ISIN: PTOTEPOE0032) and the 1.00% Apr-52 OT (ISIN: PTOTECOE0037).
- On Thursday, Italy will hold a 3/7-year BTP auction. On offer will be E2.75-3.25bln of the on-the-run 3-year 2.70% Oct-27 BTP (ISIN: IT0005622128), E1.00-1.25bln of the off-the-run 3.45% Jul-31 BTP (ISIN: IT0005595803) and E1.00-1.25bln of the on-the-run 7-year 3.15% Nov-31 BTP (ISIN: IT0005619546).
- As announced alongside the syndication mandate, the 15+ year BTP line was cancelled to facilitate the Oct-40 BTP syndication (due to take place today).
For more details on issuance this week and next week see the full document here: EZ250211.pdf
EUROZONE ISSUANCE: EGB Supply (1/2)
The Netherlands, Germany, Greece, Portugal, Italy are all due to hold auctions this week, whilst the EU and Italy have announced they will both hold syndications. We also pencil in syndications from Belgium, Germany, and Spain with possible transactions from France, the ESM and Slovakia. We look for estimated gross issuance for the week of E54.1bln, up from E26.2bln last week.
- The EU has announced it will hold a dual-tranche syndicated tap today of the 2.500% Dec-31 EU-bond (ISIN: EU000A3L1DJ0) and the 3.250% Feb-50 EU-bond (ISIN: EU000A3K4EU0), subject to market conditions. MNI pencils in E4-6bln for the short 7-year 2.50% Dec-31 EU-bond tap and E4-6bln for the 25-year 3.25% Feb-50 Green EU-bond (with an overall transaction size of E9-11bln likely).
- Italy is also likely to hold a syndication today after it announced a mandate for a new 15-year BTP maturing 1 October 2040. The maturity and timing was in line with our expectations and we pencil in a size of E8-10bln with the transaction.
- This morning, the Netherlands will hold an auction to sell E1.5-2.0bln of the 2.75% Jan-47 DSL (ISIN: NL0010721999).
- Also today, Germany will look to sell E5bln of the 2.40% Apr-30 Bobl (ISIN: DE000BU25042).
EUROZONE T-BILL ISSUANCE: W/C February 10, 2025
Spain, Belgium, Finland and Italy are all still due to sell bills this week, whilst France has already issued. We expect issuance to be E22.0bln in first round operations, down from E25.8bln last week.
- This morning, Spain will issue a combined E2-3bln of the 3-month May 9, 2025 letras and the 9-month Nov 7, 2025 letras.
- Also today, Belgium will look to sell a combined E2.2-2.6bln of the 3/12-month TCs: an indicative E0.8bln of the May 8, 2025 TC and an indicative E1.6bln of the new Feb 12, 2026 TC.
- Finally today, Finland will look to sell up to a combined E2bln of the 6-month Aug 8, 2025 RFTB and the 9-month Nov 13, 2025 RFTB.
- Tomorrow, Italy will conclude bill issuance for the week by looking to sell E8.0bln of the new 12-month Feb 13, 2026 BOT.
For more on future auctions see the full MNI Eurozone/UK T-bill auction calendar here.
