Spain taps 0.35% Jul-23.......>

SPAIN AUCTION PREVIEW: Spain taps 0.35% Jul-23 Bono, 5.90% Jul-26 Obli, 1.40%

Jul-28 Obli, and 2.35% Jul-33 Obli Thursday for between E4-5bln.

- BACKGROUND: The Jul-23 and Jul-33 were last tapped on June 21, selling at

average yields of 0.34% and 1.83% respectively. The Jul-26 and Jul-28 were last

tapped on May 17, at yields of 1.07% and 1.37%, respectively. Spain has

completed 66% of total planned 2018 issuance, and a full E5bln in sales Thursday

would bring that up to 70%.

- RV/HISTORY: The Spanish curve is slightly flatter since the last Jul-23 and

Jul-33 auctions, with the 5-Yr yield lower by 5.5bps and the 15-year by 6.4bps.

The performance versus Bunds in the past month has been more mixed, however,

with spreads wider for the 5-Yr (10.0bps), 8-Yr (6.2bps), and 10-Yr (8.8bps),

but narrower for the 15-Yr (-5.8bps). Versus the rest of the periphery, Spain

has underperformed in the past month. After outperforming Italy during Rome`s

May-June political crisis, 10-Yr Oblis now trade 123bps inside BTP equivalents

vs 166bps in early June. That said, that is far wider than the 48bps pre-May.

- TIMING: Results are due around 0845GMT.