BTP TECHS: (Z5) Bullish Trend Condition

• MNI: NORWAY JUL UNDERLYING CPI +0.8% M/M, +3.1% Y/Y
• MNI: NORWAY JUL CPI +0.8% M/M, +3.3% Y/Y

Finland and Germany are due to hold auctions this week. We pencil in issuance of just E6.5bln in the week, down from E24.5bln last week.

For the full MNI EGB Issuance, Redemption and Cash Flow Matrix with a recap of issuance last week and a look ahead to the next two weeks of issuance, click here.

• Finland will kick off issuance for the week tomorrow with a conventional auction. On offer will be up to a combined E1.5bln of the 3.00% Sep-35 RFGB (ISIN: FI4000587415) and the 0.25% Sep-40 RFGB (ISIN: FI4000440557).
• Germany will come to the market on Wednesday with E5bln of the 10-year 2.60% Aug-35 Bund (ISIN: DE000BU2Z056).
• Cancelled auction: The MEF has announced that it will not hold the 3/7/15+ year BTP auction that had been scheduled for 13 August. This is in line with recent convention and is not unexpected. The MEF noted that this decision was taken “considering the cash management activity”.

NOMINAL FLOWS: This week sees E43.9bln of redemptions, of which E30.5bln is from a formerly 10-year Bund and E13.4bln from a formerly 3-year BTP. Coupon payments for the week total E6.3bln of which E5.5bln are German and E0.8bln are Italian. This leaves estimated net flows for the week strongly negative at negative E43.8bln, versus positive E23.5bln last week.

A prominent economist and advisor discusses China's deflation challenges -- on MNI Policy MainWire now, for more details please contact sales@marketnews.com.