EUROZONE ISSUANCE: EGB Supply - W/C 24 Feb (2/2)

• On Wednesday, Germany will return to the market to hold a 15-year Bund auction. On offer will be E500mln of the 0% May-36 Bund (ISIN: DE0001102549) alongside E1.5bln of the 1.00% May-38 Bund (ISIN: DE0001102598).
• Finally on Thursday, Italy will return to the market to hold a 5/10-year BTP and CCTeu auction. Details will be announced on Monday. We see a good chance that a new 5-year BTP is launched (maturing 1 July 2030), although there is a chance that we see a final reopening of the 3.00% Oct-29 BTP (ISIN: IT0005611055) for a smaller-than-usual amount alongside another 5-year BTP. For the 10-year BTP, we look for a first reopening of the 3.65% Aug-35 BTP (ISIN: IT0005631590) that was launched via syndication on 8 January. We don’t have a strong view with regards to the CCTeu on offer.

NOMINAL FLOWS: The upcoming week sees E17.5bln of which the majority is from a formerly 3-year OAT. Coupon payments for the week total E3.5bln of which E2.8bln are French, E0.3bln are Italian and E0.2bln are Slovakian. This leaves estimated net flows for the week at positive E10.8bln, vs negative E6.8bln this week.