Scheduled fixed supply to drop to approximately €20bn next week

Scheduled fixed supply is set to drop back next week to a moderate €20.0bn or so, from the large €32.2bn taken down this past week. New syndicated deals can always bolster the total, however, and expectations are building for Germany to bring its new 30-year Bund. Conveniently, no German auctions are scheduled for next week, while the history shows the 8/54 Bund being introduced via syndicate on January 30 last year, so there is a precedent for such an appearance.

Speaking of precedent, Belgium is typically quick out of the blocks, and just as quick to return for a second delivery. After selling €7.0bn of a new 10-year OLO via syndicate January 9 last year, the sovereign resurfaced with €5.0bn of a new 6/55 OLO on February 7...