/AUCTION PREVIEW: On Wednesday, Portugal...>

PORTUGAL: /AUCTION PREVIEW: On Wednesday, Portugal sells between E1.0-1.25bln

combined of 1.95% Jun-29 PGB and 4.1% Feb-45 PGB.

- HISTORY: The 10-Yr benchmark Jun-29 was last tapped on June 12, receiving

average yield of 0.639% and bid-to-cover of 1.80x. Meanwhile the Feb-45, which

is the longest-dated PGB on Portugal's curve, was last re-opened in March 2018.

- BACKGROUND/TV: It has been a good week for long-term Eurozone issuance, with

Italy having little difficulty shifting wE3bln in re-opened 50-year BTPs via

syndication (books >E17bln). While the Feb-45 yield is sharply off all-time lows

for a 30-yr PGB of 1.15% hit last week, they remain low by historical standards

at 1.36% as of the afternoon of July 9 (down 100bps since early April). Indeed,

it briefly traded within 1bps of Spain`s Oct-46 and is only a few bps outside at

this point. That said, it has been losing ground to Italy: vs the 2046 BTP, the

PGB has moved from 160bps richer to 120bps inside as political and monetary

developments (and long-standing Portugal outperformance) have boosted relative

appetite for Italian debt.

- TIMING: Results are due shortly after 1030UK time.