EUROZONE ISSUANCE: EGB Supply - W/C 2 June (2/2)

• Spain will look to hold a Bono/Obli/ObliEi auction on Thursday with both of the on-the-run Bonos on offer (as we expected): the 2.40% May-28 Bono (ISIN: ES0000012O59) and the 2.70% Jan-30 Bono (ISIN: ES0000012O00) as well as the off-the-run the 0.70% Apr-32 Obli (ISIN: ES0000012K20) and the 2.05% Nov-39 Obli-Ei (ISIN: ES0000012M69). Given the recent syndicated launch of the new 10-year 3.20% Oct-35 Obli, we were expecting to see short duration issues on offer here. The auction size will be confirmed on Monday 2 June.
• France will look to conclude issuance for the week, also on Thursday 5 June, with a LT OAT auction. On offer will be E10.0-12.0bln combined of the on-the-run 10-year 3.20% May-35 OAT (ISIN: FR001400X8V5), the 1.25% May-36 OAT (ISIN: FR0013154044) and the on-the-run 30-year 3.75% May-56 OAT (ISIN: FR001400XJJ3).

NOMINAL FLOWS: The upcoming week sees another week of large redemptions totalling E40.7bln: E20.4bln from a formerly 3-year Spanish Obli alongside E20.3bln from a formerly 10-year Italian BTP. Coupon payments for the week total E3.7bln of which E2.2bln are Italian and E1.4bln are Spanish. This leaves estimated net flows for the week at negative E13.9bln, versus negative E21.5bln this week.