EUROZONE ISSUANCE: EGB Supply
Germany and France are due to hold auctions in the upcoming week, while we pencil a Finnish syndication in either the upcoming week or W/C 25 August. We pencil in issuance of E21.6bln for the week, up from E6.6bln this week.
- Germany will kick off issuance for the week on Tuesday with E4.5bln of the 2.20% Oct-30 Bobl (ISIN: DE000BU25059) on offer.
- Germany will return to the market on Wednesday to hold a 30-year Bund auction. On offer will be E1bln of the 2.50% Aug-46 Bund (ISIN: DE0001102341) alongside E1.5bln of the 2.50% Aug-54 Bund (ISIN: DE000BU2D004).
- France will come to the market on Thursday to hold a MT OAT auction. On offer will be a combined E8.5-10.5bln of the 2.40% Sep-28 OAT (ISIN: FR001400XLW2, as we had expected), the 2.50% May-30 OAT (ISIN: FR0011883966), and the 2.70% Feb-31 OAT (ISIN: FR001400Z2L7, as we had expected).
- France will conclude issuance for the week later on Thursday with an IL OAT auction. On offer will be a combined E0.75-1.25bln of the 3.15% Jul-32 OATei (ISIN: FR0000188799), the 1.80% Jul-40 OATei (ISIN: FR0010447367), and the 0.10% Jul-53 OATei (ISIN: FR0014008181).
- Cancelled auction: The Spanish Tesoro Publico has announced that it will not hold its auction that had been scheduled for Thursday 21 August. This is in line with precedent from recent years.
NOMINAL FLOWS: Next week sees no redemptions and coupon payments of just E0.1bln. This leaves estimated net flows for the week at positive E21.5bln, up from negative E43.6bln this week.
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