5y / 7y Bonos and off-the-run 23-year Obli

Spain will come to the market this morning to sell 5/7/23-year bonds for E5-6bln.

• 0% Jan-26 Bono: The 0% Jan-26 was launched in October and this will be the seventh auction of the Bono. However, most of the sizes on offer have been relatively small with just E8.87bln of the bond outstanding. The bids of E2.69bln at the last auction on 4 March were the lowest so far for the bond. Despite this, a healthy bid-to-cover of 2.40x was achieved, in line with the February auction.
• 0% Jan-28 Bono: The new 7-year Bono was launched on 18 March with E3.047bln sold in the first round and a further E646mln in the second. This was the largest 7-year operation since the E10bln syndicated launch of the 0.80% Jul-27 Obli in March 2020. Bids of E5.17bln were almost double the roughly E2.5bln for other 7-year Oblis which have been sold year-to-date. We would expect bids to be a bit more than this today, but less than last month's launch auction.
• 5.15% Oct-44 Obli: This will be the first auction for the 5.15% Oct-44 Obli since 2018. There have been no Oblis sold with a residual maturity of between 21-29 years since March 2019. The closest recent comparable will be the auction of the 4.90% Jul-40 Obli on 18 February which saw bids of E1.75bln and E466mln sold.