Spain will re-open the........>

SPAIN AUCTION PREVIEW: Spain will re-open the 0.05% Jan-21 Bono, 1.95% Jul-30

Obli and 4.70% Jul-41 Obli for E3.5-E4.5bln, as well as the 0.65% Nov-27 Bonoei

for E0.5-E1.0bln on Thursday.

- BACKGROUND: Spanish auctions have been well covered so far in 2018. A

successful auction on Thursday will take YTD issuance to 63% of target for the

year.

- RV/HISTORY: Spanish yields have been volatile since the end of May with the

2-year benchmark still trading around 10bps higher than at the beginning of the

year. Even at the long end, where yields have drifted lower during the first

half of 2018, there is still a discount to bunds. The 10-year Spanish-German

spread trades at 99.2bps, up from a recent low of 66.8bps on April 4. Relative

to the comparable EUR swaps the 1.95% Jul-30 Obli trades 52.4bps outside and the

4.70% Jul-41 100.4 bps outside.

- TIMING: Results are due around 0845GMT.