Government Bond Auctions: The Month Ahead

We review the supply, coupon, and redemption picture for the US, UK, Euro, JPY, AUS, NZ, and CAN government bond markets over the next month. This week, G7 net DV01 is expected to be $38.6mn/bp, compared to an average $64.4mn/bp; US $-2.0mn/bp; Euro $27.9mn/bp; Japan $3.1mn/bp; UK $3.2mn/bp. In the euro area, we estimate €39.3bn of issuance this week vs. €4.6bn in coupons and no redemptions; over the next five weeks, we expect €105.8bn of supply vs. €30.1bn in coupons and €58.3bn in redemptions for net issuance of €17.4bn. In the UK, UKT 4.625% May 2030 will be launched for £5bn, and UKT 4% Oct 2063 will be issued for £0.5bn, with about £24.3bn of supply expected in the coming five weeks. In the US, there will be no issuance next week, with $10.8bn in coupons and $80.7bn in redemptions;