3-year Bono / 7-year Obli / 20-year Green Obli /10-year Obli-Ei

Spain will come to the market today to issue E4.5-5.5bln of nominal Bono and Oblis, as well as E250-750mln of the 10-year Obli-Ei.

• On offer will be:
  • 0% May-25 Bono. ISIN: ES0000012K38.
  • 0.80% Jul-29 Obli. ISIN: ES0000012K53.
  • 1.00% Jul-42 Green Obli. ISN: ES0000012J07.
  • 0.70% Nov-33 Obli-Ei. ISIN: ES0000012C12.
• Auction history:
• The 3-year 0% May-25 Bono was launched on February 3 to replace the 0% May-24 Bono (ISIN: ES0000012H33) as the on-the-run Bono. The launch saw E2.763bln issued at an average yield of -0.003% and an average price of 100.010%. The previous benchmark 3-year Bono was launched via conventional auction on Jan 7 2021, issuing E2.583bln and was reopened nine times, with auction sizes ranging between E1.12-E2.29bln. The most recent reopening was on January 5 2022, where E1.39bln was issued for an average price of 0.392% and a bid-to-cover of 2.14x.
• The 0.80% Jul-29 Obli will be launched via conventional auction today, to replace the 0% Jan-28 Obli as the 7-year on-the-run issue. The 0% Jan-28 Obli was originally launched for E3.047bln on March 18 last year. The launch saw an average yield of 0.000% and bid-to-cover of 1.70x with bids of E5.172bln. It has since been reopened eight times, with the two most recent auctions on January 5 and November 4. These auctions saw E1.7bln and E1.991bln sold, respectively, with average yields of 0.122% and 0.044% and bid-to-covers of 1.66x and 1.39x.
• Spain’s inaugural Green Obli (1.00% Jul-42 Green Obli) was launched on September 7, 2021 for E5bln, resulting in an average yield of 1.034%. The book size of the syndication was E60.0bln. This will be the first reopening of the Green Obli. There is limited comparable auction history on the Obli, but we would expect strong demand with Green EGBs remaining in high demand.
• The 0.70% Nov-33 Obli-Ei will be reopened for E250-750mln today. The linker was reopened 13 times in the last two years, with the most recent two reopenings on December 2 and October 7 last year. The December auction saw E475mln issued for an average yield of -1.047% and bid-to-cover of 1.80x, whilst the October auction was slightly larger with E510mln sold for a -1.074% average yield and 1.41x bid-to-cover.
• Timing: Results will be available shortly after the auction closes at 0930 GMT / 1030 CET.