Spain taps 3-year 0.05% Jan...>

SPAIN AUCTION PREVIEW: Spain taps 3-year 0.05% Jan 2021 Bono, 5-year 0.35% Jul

2023 Bono and 10-year 1.40% Jul-2028 Obli for between E3.5-E4.5bln Thursday.

Spain also re-open 1.00% Nov 2030 Bono linker for between E250-E750mln.

- BACKGROUND: According to MNI calcs Spain are well on their way to completing

issuance this year with 73% completed. Spain redemption of E20.8bln and coupons

of E8bln this week are seen helping though.

- RV/HISTORY: Spanish debt markets are trading just above the average seen for

this year in their range to Germany at 97.7bp having edged higher in second half

of July. The 2-10Y section of the Spanish curve has steepened by circa 25bps

since hitting July low of 150bps, while the 2-5-yr curve has steepened by around

12bps during the same period and is at widest since beginning of Feb. The Jan-21

Bono currently trades at mid-yield of -0.14%, the Jul-23 Bono at 0.392% and the

Jul-28 at 1.446% according to Tradeweb. The Jan-21 was last sold at a yield of

-0.089% and cover 2.22x, the Jul-23 yielded 0.337% and cover 1.56x and the

Jul-28 yielded 1.308% and cover 1.47x

- RESULTS: Auction bidding closes at 0830GMT with results around 0840GMT