EUROZONE ISSUANCE: EGB Supply: W/C 30 June (2/2)

• France, also on Thursday will then look to hold an LT OAT auction with a combined E10-12bln on on-the-run 10/15/30-year OATs on offer: the 10-year 3.20% May-35 OAT (ISIN: FR001400X8V5), the long 15-year 3.60% May-42 OAT (ISIN: FR001400WYO4) and the 30-year 3.75% May-56 OAT (ISIN: FR001400XJJ3).
  • This will be the first reopening of the 3.60% May-42 OAT and may well be the last auction of the 3.20% May-35 OAT as an on-the-run issue – we pencil in a new 10-year OAT to be launched in September (and note that the August auction often is shorter in duration, but given the strong 10-year demand there is a decent chance that we do see a final reopening of the 3.20% May-35 OAT in August.
• Belgium will look to conclude issuance for the week by holding an ORI auction on Friday with ORI Facility with details to be confirmed on Thursday.

NOMINAL FLOWS: The upcoming week sees a E40.7bln of redemptions: E16.4bln of a formerly 5- year BTP, E6.3bln of a formerly 15-year RFGB and E18.0bln of a formerly 3-year EU-bond (the first large EU-bond redemption since the EU stepped up issuance). Coupon payments for the week total E9.5bln of which E6.0bln are German, E1.6bln Italian, E1.2bln from the EU and E0.6bln are Finnish. This leaves estimated net flows for the week at negative E25.2bn, versus positive E3.4bln this week.