EUROZONE ISSUANCE: EGB Supply
Italy will hold its second auction of the week today while Belgium and Germany have also come to the market this week. We pencil in gross nominal issuance of E22.1bln, down from E31.1bln last week.
- Italy will return to the market this morning to hold a 5/10-year BTP and CCTeu auction for a combined total of up to E9.75bln. On offer will be E3.0-3.5bln of the on-the-run 5-year 3.80% Aug-28 BTP (ISIN: IT0005548315), E1.00-1.25bln of the off-the-run 10-year 2.50% Dec-32 BTP (ISIN: IT0005494239), E3.25-3.75bln of the on-the-run 10-year 4.35% Nov-33 BTP (ISIN: IT0005544082) and E1.00-1.25bln of the 0.80% Oct-28 CCTeu (ISIN: IT0005534984).
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EUROZONE ISSUANCE: EGB Supply
The Netherlands and Italy both still look to issue this week while the EU came to the market yesterday. We pencil in gross nominal issuance of E17.8bln, up from E13.0bln last week.
- This morning, the Netherlands will look to sell E1.5-2.0bln of the 30-year 2.00% Jan-54 DSL (ISIN: NL00150012X2).
- Also today, Italy will hold a BTP Short Term / BTPei auction. E2.0-2.5bln of the 3.40% Mar-25 BTP Short Term (ISIN: IT0005534281) will be on offer (possibly for the last time ahead of a new BTP-ST in July) alongside E1.25-1.75bln of the 1.50% May-29 BTPei (ISIN: IT0005543803) which was launched in April.
- On Friday, Italy will look to conclude H1 issuance with a 5/10/11-year BTP auction. The 5-year on-the-run 3.80% Aug-28 BTP (ISIN: IT0005548315) will be reopened for E2.5-3.0bln alongside the 10-year on-the-run 4.35% Nov-33 BTP (ISIN: IT0005544082) for E2.75-3.25bln and E1.00-1.25bln of the 5.00% Aug-34 BTP (ISIN: IT0003535157) which originally had a 30-year maturity. There will be no CCTeu sold at this auction.
- Germany will hold a press conference to discuss its Q3 issuance plans at 10:00BST / 11:00CET this morning while the EU will hold an investor call tomorrow to present its H2 issuance plans (although note that it has previously published these plans ahead of the call). Finland will either outline its Q3 issuance plans this week or next.
EURJPY TECHS: Northbound
- RES 4: 158.72 2.00 proj of the May 11 - 29 - 31 price swing
- RES 3: 157.84 2.236 proj of the Mar 20 - 31 - Apr 6 price swing
- RES 2: 157.53 1.764 proj of the May 11 - 29 - 31 price swing
- RES 1: 156.93 High Jun 22
- PRICE: 156.75 @ 06:46 BST Jun 27
- SUP 1: 155.06/154.05 Low Jun 23 / 20 and key short-term support
- SUP 2: 153.08 20-day EMA
- SUP 3: 151.61 Low Jun 15
- SUP 4: 150.35 50-day EMA
The EURJPY uptrend remains intact and the cross continues to trade at its recent highs. This reinforces the current bullish theme following the latest impulsive rally. Price has recently cleared key resistance at 151.61, the May 2 high and an important bull trigger. Moving average studies are in a bull mode position too, highlighting positive market sentiment. The focus is on 157.53 next, a Fibonacci projection. Initial key support is at 154.05, the Jun 20 low.
EUROZONE T-BILL ISSUANCE: W/C 26 June, 2023
Austria, Greece and Italy still all look to sell bills this week while Germany and France came to the market yesterday. We look for issuance at first round operations of E18.8bln, up from last week's E17.0bln
- This morning, Austria will look to sell E1bln of the 4-month Oct 27, 2023 ATB and E1bln of the new 7-month Jan 25, 2024 ATB.
- Greece will come to the market tomorrow, with E375mln of the new 26-week Dec 29, 2023 GTB on offer.
- Italy will also come to the market tomorrow morning to sell a combined E4.0bln of 5/6-month BOTS: E2.5bln of the 5-month Nov 30, 2023 BOT and E1.5bln of the 5-month Jan 12, 2024 BOT.
For more on future auctions see the full MNI Eurozone/UK T-bill auction calendar.
