EUROZONE ISSUANCE: EGB Supply

Spain, France, Ireland and Italy are all still due to hold auctions this week while Slovakia, Belgium, Finland, Greece and Germany have already held auctions this week and the EU and Italy have held syndications. We pencil in estimated gross issuance for the week at E44.8bln, up from E23.1bln last week.

• Spain will come to the market this morning to hold a Bono/Olbi auction, with a E5.5-6.5bln target range. On offer will be the 2.50% May-27 Bono (ISIN: ES0000012M77), the 5.75% Jul-32 Obli (ISIN: ES0000012411) and the 3.45% Jul-43 Obli (ISIN: ES0000012K95). This will be only the second time a nominal Obli with a longer maturity than 15 years will be on offer at a conventional auction this calendar year.
• France will then hold a MT OAT auction for E11.0-12.5bln (a step up from the more normal E12.0bln upper limit). We will see a reopening of the on-the-run 3-year 2.50% Sep-27 OAT (ISIN: FR001400NBC6) alongside the on-the-run 5-year 2.75% Feb-29 OAT (possibly for the last time before a new issue in April). Alongside these the 1.50% May-31 OAT (ISIN: FR0012993103) will be on offer.
• This morning will also see Ireland come to the market to hold its first auction since September with the on-the-run 10-year 2.60% Oct-34 IGB (ISIN: IE000LQ7YWY4) on offer alongside the 3.00% Oct-43 Green IGB (ISIN: IE000GVLBXU6).
• France will conclude the day’s issuance with an IL OAT auction for E1.5-2.0bln. On offer will be the 0.10% Mar-29 OATei (ISIN: FR0013410552), the 1.80% Jul-40 OATei (ISIN: FR0010447367) and the 0.10% Mar-36 OATi (ISIN: FR0013524014).
• Italy will come to the market tomorrow to conclude issuance for the week with E2.50-2.75bln of the 3.20% Jan-26 BTP Short Term (ISIN: IT0005584302) on offer.

EZ240321.pdf