Spain on Thursday sells new...>

SPAIN AUCTION PREVIEW: Spain on Thursday sells new 0.25% Jul-24 Bono and

re-opens 1.85% Jul-35 Obli for a combined amount between E4-5bln.

- HISTORY: The new Jul-24 will slot in between the Apr-24 and Oct-24 Bonos in

the 5-yr segment of the Spanish curve. The Jul-23 currently serves as the

Spanish 5-Yr benchmark. The latter was last sold on March 7 at average yield of

0.14% and cover ratio of 2.13x. The Oct-24 was last sold on Jan 17, at 0.57%

yield and 2.34x cover. This will be the first re-opening of the 15-Yr benchmark

Jul-35, which was launched via syndication on February 26.

- BACKGROUND/RV: Most focus will be on the sale of the Jul-24. Spanish yields

have come down sharply since Q3 2018, with the 5-Yr yield now at the lowest

level since at least 1993 (when BBG data series begins) to 0.01%, vs 0.78% in

October. Versus Germany, however, the bullish move has not been as pronounced:

spreads vs Bobl have come down 42bps to 45.6bps since October, well above the

2018 low of 18.3bps (which was the lowest since the global financial crisis).

5-Yr Bonos are also trading 145bps inside Italy, vs 216bps in October.

- TIMING: Results are expected around 0945BST.