(Adds Belgian offer volume in 5th graph; adds Italian auction in last graph)
By Emese Bartha
A handful of Eurozone countries are lining up to complete their annual government bond issuance programs next week.
Slovakia, Belgium and Finland have scheduled bond auctions, while Portugal is expected to join the trio with its last bond sale this year.
Slovakia is set to launch a new "short" 10-year bond Monday with a May 2026 maturity. The country's debt agency, Ardal, indicated earlier this month that it would aim to accept between 400 million euros ($427.7 million) and EUR600 million.
Commerzbank rates strategist David Schnautzexpects the operation to proceed smoothly, despite a likely allocation at the upper end of the range. The auction could benefit from the eligibility of the bond for the European Central Bank's asset-purchase program and a roughly two-month supply hiatus.
Also Monday, Belgium will reopen its June 2026, June 2031 and June 2047 bonds at its last scheduled capital market foray this year, with a EUR1.8 billion to EUR2.3 billion target range.
Mizuho rates strategist Antoine Bouvet is "optimistic" about the 2047 OLO tap, as repo levels are likely to indicate a short base of this bond. The relative value interest should be healthy, too, after the bond has cheapened on the Belgian fitted curve and stands as the cheapest one in the 11-years and longer area, Mr. Bouvet said.
Finland will offer up to EUR1 billion Tuesday in the September 2023 bond, also likely to be its last bond sale this year.
Portugal's debt office is expected to pencil in abond auction for next Wednesday, and if it does, an announcement will come later Friday. Commerzbank's Mr. Schnautz eyes an EUR1 billion tap of the October 2022 and July 2026 bonds.
Germany, which has sales to come beyond next week, will tap Wednesday its August 2026-dated Bund with EUR3 billion on offer.
Italy will tap zero coupon and inflation-linked bonds Friday, with the terms of the auction to be announced Tuesday.
-Write to Emese Bartha at email@example.com; Twitter: @EmeseBartha
(END) Dow Jones Newswires
November 18, 2016 07:25 ET (12:25 GMT)
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