Weekly Fixed Income Supply Preview: European Supply Returns As Heavy Redemptions Ease Net Issuance

European government bonds dominate this week's supply calendar, with EUR 26-27 bln of issuance, led by France, Germany and Spain. However, the more significant technical factor is the sizeable return of cash to investors. UBS expects approximately EUR 57 bln of coupons and redemptions, leaving net conventional issuance around negative EUR 30.5 bln. The US Treasury has no auctions scheduled, shifting attention towards Wednesday's quarterly refunding announcement and the outlook for November borrowing. UK supply is limited to GBP 3.25 bln of green gilts, while Japan's 10-year JGB auction represents the principal Asia-Pacific transaction. The week's main supply tests will come from Thursday's French and Spanish auctions, but substantial European redemptions should provide an important offset to the new issuance. Continue Reading Here