EUROZONE ISSUANCE: EGB Supply
Germany and Greece both still look to issue this week while Slovakia, Belgium and Germany have already come to the market. We pencil in gross nominal issuance of E12.1bln for the week, notably down from last week’s E48.5bln.
- Today, Greece will look to sell E200mln of the 4.20% Jan-42 GGB (ISIN: GR0138015814).
- Also this morning, Germany will return to the market to hold a 30-year Bund auction, selling E1.0bln of the 0% Aug-50 Bund (ISIN: DE0001102481) and E1.5bln of the 0% Aug-52 Bund (ISIN: DE0001102572).
- On Friday, the DSTA will announce its plans for Dutch issuance in Q3-24 at 12:00BST / 13:00CET. In addition to these we may also receive H2 funding plans from the EU and Q3 funding plans from Germany.
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EUROZONE ISSUANCE: EGB Supply W/C 22 May, 2023 (1/2)
The EU, Germany, Italy and potentially Portugal all look to issue this week. We pencil in gross nominal issuance of E20.5bln from announced operations, down from E33.1bln last week.
- The EU will kick off auctions this morning with up to E5bln of 5/11-year EU-bonds on offer: Up to E2.5bln each of the 0% Oct-28 EU-bond (ISIN: EU000A3KWCF4) and the 3.25% Jul-34 EU-bond (ISIN: EU000A3K4D41).
- Belgium’s auction that was scheduled for Monday 22 May has been cancelled due to the 20-year 3.45% Jun-43 OLO syndication that was held on Tuesday 9 May.
- The Netherlands will look to kick off tomorrow's auctions, with E2.0-2.5bln of the 5-year 0.75% Jul-28 DSL (ISIN: NL0012818504) on offer.
- Later on Tuesday, Germany will look to sell E6bln of the 2.80% Jun-25 Schatz (ISIN: DE000BU22015).
EUROZONE T-BILL ISSUANCE: W/C May 22, 2023
Germany, France, Austria and Italy will look to sell bills this week. We look for issuance at first round operations of E16.6bln, down from last week's E18.7bln.
- Germany will kick off bill issuance for the week this morning with E3bln of the new 6-month Nov 22, 2023 bubill on offer.
- This afternoon, France will look to sell up to E6.6bln of BTFs. On offer will be: E2.3-2.7bln of the 12-week Aug 16, 2023 BTF, E1.4-1.8bln of the 21-week Oct 18, 2023 BTF and E1.7-2.1bln of the new 51-week May 15, 2024 BTF.
- Tomorrow Austria will come to the market to reopen E1.5bln of the 3-month Aug 24, 2023 ATB and E1.0bln of the 5-month Oct 27, 2023 ATB.
- Italy will conclude this week's eurozone bill issuance on Friday, with the new 6-month BOT on offer. Further details including the auction size will be announced on Tuesday.
EURJPY TECHS: Bullish Outlook
- RES 4: 152.00 1.382 proj of the Mar 20 - 21 - Apr 6 price swing
- RES 3: 151.61 High May 2 and the bull trigger
- RES 2: 150.32 76.4% retracement of the May 2 - 11 bear leg
- RES 1: 149.80 High May 19
- PRICE: 149.15 @ 06:39 BST May 22
- SUP 1: 148.09 20-day EMA
- SUP 2: 146.56/13 50-day EMA / Low May 11
- SUP 3: 145.67 High Mar 31
- SUP 4: 145.22 2.0% 10-dma envelope
EURJPY traded higher last week, extending the bounce from 146.13, the May 11 low. The 50-day EMA, which intersects at 146.56 today, remains intact and marks a key support. A continuation higher would signal scope for a climb towards 150.32 next, a Fibonacci retracement. On the downside, a clear break of the 50-day EMA is required to signal a resumption of bearish activity. Initial support lies at 148.09, the 20-day EMA.
