Spain taps E3.5-E4.5bln of....>

SPAIN AUCTION PREVIEW: Spain taps E3.5-E4.5bln of SPGB 0.45% Oct-22, SPGB 2.35%

Jul-33 and SPGB 2.9% Oct-46 on Thursday. 

- BACKGROUND: It is a fairly liquid time of the year and today, there was

E15.3bln BTP redemption, a E13.3bln Dutch redemption and E12.2bln Austrian

redemption on Monday totalling E41bln and alongside E5bln of coupon payments,

flows may still leak into Spanish or French auctions. The Oct-22 and Oct-56

Bonos were both tapped on Jan 4 this year, while the Jul-33 Bonos was re-opened

back in July 2017.

- RV/HISTORY: Mid-yield on the Oct-22 is slightly lower than when this bond was

tapped at the beginning of January, but has risen by 10bps from year-to-date low

of 0.268% seen last week. As for the Jul-33 mid-yield is seen at 2.147% towards

the bottom end of its 2018 range. While the Oct-46 mid-yield is seen at 2.741%

also close to 2018 low of 2.705%. For the Oct-22, the 3 auction average

bid-cover is 2.25x, the 2 auction average for the Jul-33 is 1.58x, the 3 auction

average for the Oct-46 is 1.62x.

- RESULTS: Auction bidding closes at 0930GMT with results around 0940GMT