On Thursday, Spain sells......>

SPAIN AUCTION PREVIEW: On Thursday, Spain sells new 0.05% Oct-21 Bono, re-opens

1.40% Jul-28 Obli, re-opens 6.00% Jan-29 Obli - for a total of between

E4.0-5.0bln - and re-opens 0.15% Nov-23 BonoEi linker for between E0.25-0.75bln.

- HISTORY: The 10-yr benchmark Jul-28 last sold on 1.50x cover and 1.42% avg

yield on Sep 6, and the Nov-23 linker on Jun 7 at -0.79% avg yld and 1.69x

cover. The Jan-29 has not sold since Apr 2017. Sale at top end of target range

would put Spain 92% of planned 2018 issuance, up from 85% currently.

- RV: Over the past month Spanish bonds have weakened, owing in large part to

Italian budget concerns hurting the EGB periphery more broadly. The belly of the

curve has weakened most, with 3-year yields up 10.7bps at 0.033%, 5-year up

11.5bps at 0.543%; 10-year up 8.5bps at 1.533%. Spain has become increasingly

rich to Italy, however, with the 10-Yr BTP/Obli spread hitting highest levels

since 2011 at around 200bps on Tuesday (last trading at 173.8bps). However, the

spread vs equivalent Bunds is fairly typical of 2016-18 levels, at 107bps,

having touched 111.8bps this week.

- TIMING: Results are due shortly after the auction closes (around 0835 GMT).