- The DSTA will sell the DSL 2047 for an amount between EUR 0.75 – 1.25bn tomorrow
- We judge that tomorrow’s sale will most likely finalise the Dutch long dated issuance programme for this year, although the Dutch State could return in Q4
- Assuming EUR 1bn of issuance, we calculate that year to date bond supply will increase to 67% of our forecast and to 64% of the midpoint of the official target range
- In the recent bond rout, curves steepened while10s30s remained very resilient
- We see good value in the DSL 2047 compared to Bunds, especially in a box with the 10y or 20y part of the curve
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