Spain will come to market.....>

SPAIN AUCTION PREVIEW: Spain will come to market on Thursday with a tap of

E3.5-4.5bln. On offer are the 0.05% Oct-21 Bono, 0.60% Oct-29 Obli, 5.75% Jul-32

Obli and the 1.85% Jul-35 Obli. 

- BACKGROUND: Previous auction results (auction date, sold, average yield,

bid-to-cover): 0.05% Oct-21 Bono (July 18, E1.29bln, -0.47%, 1.67x), 0.60%

Oct-29 Obli (Sep 5, E1.69bln, 0.18% 1.66x), 5.75% Jul-32 Obli (Nov 18 2018,

E0.63bln, 1.98%, 1.47x), 1.85% Jul-35 Obli (Jun 20, E1.15bln, -0.88%, 1.42x).

- RV/HISTORY: Following the sharp reversal in yields since mid-August, Spanish

yields have inched lower over the last week while the curve has marginally

flattened. The stabilisation in macro data and a relatively lukewarm response to

the ECB easing package in September are keeping yields off the lows. Trading

relative to the comparable EUR swap: 0.05% Oct-21 Bono (-3.4bp), 0.60% Oct-29

Obli (+32.3bp), 5.75% Jul-32 Obli (+49.1bp), 1.85% Jul-35 Obli (+53.7bp).

- TIMING: Results are due out soon after the auction closes at 0945 GMT.