Halister News

(Bloomberg) -- Supply drops off sharply, with long-end auctions from Germany, Belgium and U.K., while a lack of peripheral supply may tempt Spain to issue a new 10y via syndication, as some in the market expect.

• Data is light for the week, with focus on flash PMI releases on June 23. ECB’s Lautenschlaeger speaks on June 19, followed by Coeure on June 20
• In the U.K., Brexit negotiations get under way on June 19, with a press conference around 5pm London
• There are some market expectations for a new Spain 10y syndicated issue. Rising speculation saw the sector underperform on the curve and widen vs Italy on Friday; Commerzbank expects the deal next week, for EU8b
• SUPPLY/REDEMPTIONS: Auction supply may total EU4.2b, equivalent to around EU7m/bp or 45k bund futures in risk terms
  • June 19: Belgium to sell to 0.5% 10/2024, 0.8% 06/2027, 1.6% 06/2047 for EU2.7-3.2b
  • June 13: Germany to sell 2.5% 07/2044 for EU1b
  • There are no redemptions due, though coupons from Belgium (EU2.3b) and France (EU0.2b) are set to be repaid, according to Citi
• U.K. are due to sell 1.5% 07/2047 for GBP2.25b on June 22; there are no gilt cash flows eligible for re- investment
  • NOTE: Auction calendar is ECO20 WE

To contact the reporter on this story: Stephen Spratt in London at sspratt3@bloomberg.net