On Thursday Spain will........>

SPAIN AUCTION PREVIEW: On Thursday Spain will re-open the 0.0% Apr-23 Bono, 0.0%

Jan-25 Bono, 1.30% Oct-26 Obli and the 1.85% Jul-35 Obli for a combined

E5.5-6.5bn. 

- BACKGROUND: Previous auction results (date, volume, average yield,

bid-to-cover): 0% Apr-23 Bono (2 Apr 20, E2.34bn, 0.07%, 1.6x), 0.0% Jan-25 Bono

(2 Apr 20, E1.15bn, 0.24%, 2.37x), and the 1.85% Jul-35 Obli (9 Jan 20, E1.21bn,

0.85%, 1.54x).

- RV/HISTORY: SPGBs have traded lower since the beginning of April. As one of

the hardest hit from the coronavirus crisis, the economic hit to Spain is

expected to be particularly severe. Data on Wednesday show inflation slowing to

0.0% Y/Y in March and follows a particularly bleak PMI print the previous week

with the composite series printing 26.7 for March. A rift between euro members

on how to finance the fight against coronavirus (whether through existing

instruments or coronabonds) has exposed the lack of coordination across the bloc

and the divisions between creditor and debtor states, keeping pressure on SPGBs.

- TIMING: Results are due out at 0945 GMT.