Free Trial

Spain on Thursday will........>

SPAIN AUCTION PREVIEW
SPAIN AUCTION PREVIEW: Spain on Thursday will launch a new Obli 0.35% Jul-23,
and tap Obli 5.90% Jul-26 and Obli 1.40% Apr-28, for a total of E4.0-5.0bln.
- BACKGROUND: Spain has already completed just under half of its planned 2018
issuance of E126.3bln, and would reach 53% even at bottom of guidance (E4bln).
- RV/HISTORY: Spanish debt has sold off with Italian political concerns hitting
the periphery as a whole, with the 10Y spread over Bunds at 2-month highs around
80bps. That being said, the 10Y spread is not far off the post-2010 low of 64bps
set in Feb, and the bond is trading inside Italian BTPs by the most since 2011,
which suggests limited relative value from a periphery perspective. For the new
Jul-23, the closest-dated 2023s have seen a 20bps yield rise since end-March,
with spread over Bunds up around 13bps. The last tap of the 10Y benchmark Apr-28
on 3 May saw a solid cover ratio of 2.0x and an average yield of 1.29% on
E1.3bln sold, while the Jul-26 was last re-opened in Aug 2017. Cover has
averaged 2.2x at Spanish nominal bond auctions in 2018 thus far, with the 5-9
year maturity bucket a little higher at 2.5x and 10-Yrs a bit lower at 2.1x.
- RESULTS: Auction bidding closes at 0830GMT with results around 0840GMT.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.