AUCTION PREVEW: Portugal will sell the.....>

PORTUGAL: AUCTION PREVEW: Portugal will sell the 2.875% Jul-26 PGB and the

0.475% Oct-30 PGB on Wednesday for E1.00-1.25bn.

- BACKGROUND: Previous auction results (date, volume, average yield,

bid-to-cover): 2.875% Jul-26 PGB (10 Jun 2020, E0.59bn, 0.14%, 2.08x), 0.475%

Oct-30 PGB(10 Jun 2020, E0.92bn, 0.60%, 1.50x)

- RV/HISTORY: PGBs have broadly rallied since April and spreads have narrowed

over bunds, largely on the back of the ECB's beefed up asset purchases. The

missing piece of the puzzle - a coordinated regional fiscal response to

complement the efforts of the ECB in tackling the economic impact of the

coronavirus crisis - arrived this week as the EU agreed to a EUR750bn recovery

fund, which has been risk positive for markets and will support PGBs heading

into Wednesday's auctions. 

- TIMING: Results are due around 1030BST.