Spain will come to market.....>

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

E5-6bn. On offer are the 0.0% Jan-25 Bono, 0.60% Oct-29 Obli, 1.85% Jul-35 Obli

and the 1.00% Oct-50 Obli.

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

bid-to-cover): 0.0% Jan-25 Bono (2 Jul 2020, E1.96bn, -0.15%, 1.79x), 0.60%

Oct-29 Obli (21 Nov 2019, E2.15bn, 0.41%, 1.56x), 1.85% Jul-35 Obli (4 Jun 2020,

E1.01bn, 0.95%, 2.43x), 1.00% Oct-50 Obli (7 May 2020, E1.76bn, 1.67%, 1.17x).

- RV/HISTORY: Reflecting broader periphery-core spread compression, SPGB spreads

over bunds have continued to narrow, having compressed sharply since the April

blowout. The ECB's introduction and subsequent expansion of PEPP has been a key

contributor in squeezing out idiosyncratic risk that had undermined SPGBs during

the coronavirus crisis. Spain will again be competing with French issuance at

roughly the same time on Thursday. There will be no significant data releases

ahead of the auction to serve as a potential catalyst for price action, while

the ECB meeting later in the day is widely expected to be a no-event. 

- TIMING: Results are due out around 0945BST