5-year Bono, 6/20-year Oblis, Nov-27 Obli-Ei (1/2)

Spain will come to the market this morning to sell E4.5-5.5bln of nominal bonds (5-year Bono, 6/20-year Oblis) and E250-750mln of the 0.65% Nov-27 Obli-Ei.

• 0% Jan-26 Bono: This will be the ninth auction of the benchmark 5-year Bono which was launched in October. After a bumper month for demand in April, May saw bids return to a more normal level of E2.76bln with E1.33bln sold leading to a bid-to-cover of 2.08x. At the time of writing spreads to the 0% Apr-26 Bobl were around 33.5bp, close to the tightest since the Bobl launched in January. We would expect decent demand at today's auction.
• 1.45% Oct-27 Obli: The off-the-run long 6-year Obli will be issued for the first time in almost 2 and a half years this morning. The bond was originally launched as a 10-year benchmark via syndication in 2017. The closest comparable bond issued recently was the 1.50 Apr-27 which saw E2.89bln of bids in April with E1.24bln sold at a cover of 2.34x.