3/5/30-year nominals and 12-year linker

Spain will come to the market today for its first government debt auction of 2021. It aims aims to raise E5-6bln through nominal sales and to sell E250-750mln of the 0.70% Nov-33 Obli-Ei.

• New 3-year Bono: 0% May-24. This will be the first 3-year issue since September. Indeed, we note that big drop off in 3-year issuance seen in the second half of 2020. In H1-2020, E23.2bln of 3-year Bonos were sold while in H2-2020 only E1.7bln was sold. Demand doesn't appear to have weakened however with all 3-year auctions since April having seen E3.7-5.0bln of bids.
• 0% Jan-26 Bono. This Bono was launched in October and re-opened in November leaving E3.73bln outstanding ahead of today's auction. The amount bid for the 0% Jan-26 Bono was roughly half the amount in November compared to seen at the October launch auction.
• 1.00% Oct-50 Obli. This Obli was launched just under a year ago in February through a E5bln syndicated offering. Since then demand has remained decent with a further E7.8bln sold through four auctions, most recently in September.
• 0.70% Nov-33 Obli-Ei: This linker was originally issued in September 2018 via syndication and has since been reopened six times via auction, most recently in October 2020 when E581mln was sold with a bid-to-cover of 1.95x.