On Jan 17 the Tesoro..........>

SPAIN AUCTION PREVIEW: On Jan 17 the Tesoro Publico come to market for a

combined E4.0-5.0bln, on offer are the re-openings of the 0.05% Oct-21, 0.35%

Jul-23 Bonos, 2.75% Oct-24, and 1.50% Apr-27 Oblis.

- HISTORY: For comparative purposes at the last auction of the Bonos on Jan 3: 

E0.55bln of 0.05% Oct-21 Bonos were allotted, average yield 0.02%, cover 3.65x. 

E1.27bln of 0.35% Jul-23 Bonos were allotted, average yield 0.41%, cover 1.65x. 

The last auction of the Oblis were on Dec 18, 2014 for the 2.75% Oct-24 and Jun

15, 2017 for 1.50% Apr-27. Thus do not serve as great comparisons, however the

bonds currently trade at respective yields of 0.326% and 1.049%. 

- RV/BACKGROUND: Spanish bonds have made gains across the curve since

mid-November and are currently trading around YTD highs. 

Despite the European slowdown Spanish data has impressed early 2019, giving

value to the government bonds. The main threat to the economy is the threat of a

general election before 2020. This would delay necessary economic decisions that

would not please the electorate and put downward pressure on bond prices.    

- TIMIMG: Results are due shortly after the auction close at 0930GMT.