Spain will tap the 0.0%.......>

SPAIN AUCTION PREVIEW: Spain will tap the 0.0% Apr-23 Bono, 0.0% Jan-25 Bono,

5.90% Jul-26 Obli and the 1.25% Oct-30 Obli on Thursday for E5.0-6.0bn.

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

bid-to-cover): 0.0% Apr-23 Bono (4 Jun 2020, E2.29bn, -0.22%, 1.59x), 0.0%

Jan-25 Bono (4 Jun 2020, E1.29bn, -0.03%, 1.95x), 5.90% Jul-26 Obli, 1.25%

Oct-30 Obli (21 May 2020, E2.53bn, 0.71%, 1.29x).

- RV/HISTORY: SPGBs have rallied since last week and the curve has bull

flattened. Although the risk-on trade earlier in the week appears to have lost

some momentum, SPGB spreads over bunds have narrowed since last week. There will

be no significant data releases before the Thursday auction to serve as a

potential catalyst for price action. However, the Spanish auction will also need

to contend with additional supply from France, which is looking to sell a

combined E11.0-13.5bn of linkers at around the same time.

- TIMING: Results are due around 0940BST