On Dec 5 the Tesoro Publico...>

SPAIN AUCTION PREVIEW: On Dec 5 the Tesoro Publico come to market for a combined

E2.5-3.5bln. On offer are the re-opened:0.05% Oct-21 Bono, 0.35% Jul-23 Bono,

and 1.40% Jul-28 Obli.

- HISTORY: For comparison;

At the last auction of the 0.05% Oct-21 Bono on Nov 8, E1.22bln was allotted at

an average yield of 0.10% with a cover of 2.17x.

At the last auction of the 0.35% Jun-23 Bono on Nov 8, E1.42bln was allotted at

an average yield of 0.57% with a cover of 1.95x.

At the last auction of the 1.40% Jul-28 Obli on Nov 22, E1.31bln was allotted at

an average yield of 1.61% with a cover of 1.45x.

- RV/BACKGROUND: The Spanish curve sold off slightly along with other EGB

peripheries on Dec 4 as Bunds rallied on a broader risk-off appetite.

The 5-year Bono gained 0.5bps to trade at 0.457%, the 10-year gained 0.2bps to

trade at 1.499%. The 2s10s curve has slightly bear steepened by 0.2bps.

The 10-year spread Vs BTPs widened on Dec 4 by 1.3bps to 165.8pbs.

- TIMING: Results will be due shortly after the auction closes at 0945GMT.