The EFSF, Austria, France, Latvia and Portugal have all held syndications this week while Slovakia, Germany, Finland, and Greece have held auctions. Gross issuance for the week was E26.6bln, down from E43.0bln last week.
For more on this week's issuance and a look ahead to next week's supply see the PDF here:
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Greece is due to hold a syndication today with Germany returning for its second auction of the week. The EU and Finland held syndications yesterday while Italy and Germany held auctions. We pencil in estimated gross issuance for the week from currently announced operations at E28.5bln. However, there is still a chance that we see another syndication or two announced this week with Austria, France, Portugal and Spain all having the potential to come to the market.
A bearish theme in Gilt futures remains intact and gains are considered corrective. The contract traded lower last week, delivering a fresh cycle low of 96.01 on Apr 17. This maintains the bearish price sequence of lower lows and lower highs. Furthermore, MA studies have crossed, highlighting a bear-mode set-up. Scope is seen for an extension towards 95.96 next, a Fibonacci projection. Initial firm resistance is 98.23, the Apr 12 high.
Germany, France, and Austria have already sold bills this week. Greece, and Italy are still due to sell bills this week. We expect issuance to be E20.7bln in first round operations, down from E22.0bln last week.
For more on future auctions see the full MNI Eurozone/UK T-bill auction calendar here.