Auction Calendar 2017: Supply dynamics add steepening risk

·         The supply landscape of government bonds in 2017 continue to show a shift toward issuing more long-tenor bonds, as expected, in order to trim the concentration of maturity.

·         Supply dynamics is supportive of front end, but may add steepening to the ultra-long end.

·         A notable new feature is the extension of GII curve to 30y from the existing 20y, with the debut auction in May 2017.