On Thursday, Spain re-opens...>

SPAIN AUCTION PREVIEW: On Thursday, Spain re-opens three bonds for between

E3.0-4.0bln: 0.05% Oct-21 Bono, 1.45% Apr-29 Obli, and 4.90% Jul-40 Obli.

- HISTORY: The 3-yr benchmark Oct-21 was last sold on February 21, at average

yield -0.12% and 3.25x bid-to-cover. The 10-Yr benchmark Apr-29 was last

re-opened on March 7, yielding 1.22% with 1.14x cover.  The Jul-40 (launched

back in 2007) has not been re-opened since March 2018.

- BACKGROUND/RV: Potentially key to the near-term backdrop for this auction is

that Spain is up for a ratings review on Friday by S&P (currently A- with a

positive outlook) and DBRS (A, stable). A rally in Portuguese and Italian paper

after positive ratings news for those two sovereigns last week may be at front

of mind for potential Spanish buyers. It has also meant Spain is looking better

relative value than it did at the beginning of the month. 10-Yr PGB/Spain is at

tightest spread since late 2009 (15bps, hit 10bps earlier this week), and while

10-Yr BTP is still 130bps outside Spain, that is near 10-month lows and well off

wides around 190bps. 

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