Spain will tap the market.....>

SPAIN AUCTION PREVIEW: Spain will tap the market for E4.25-5.75bn on Thursday

with a mix of nominal and inflation-linked bonds. - BACKGROUND: On offer at the

0.35% Jul-23 Bono (5-year benchmark), 1.40% Jul-28 Obli (10-year benchmark),

2.70% Oct-48 Obli (30-year benchmark), 0.30% Nov-21 SPGei.

- RV/HISTORY: Spanish bonds have traded broadly sideways so far in 2018, albeit

in a wide range and punctuated by bursts of volatility on the back of political

turbulence at home and in nearby Italy. Having flattened 40-60bps during the

first quarter, the curve has since steepened somewhat with 2s10s trading at

171.6bps from a 2018 low of 142.7bps and the 2s30s up to 285.9bps from 250.3bps.

The 0.35% Jul-23 Bono trades 13.4 outside of the comparable EUR swap, the 1.40%

Jul-28 Obli is +53.8 and the 2.70% Oct-48 Obli is +108.8bps. The 0.30% Nov-21

SPGei has sold off since the end of March with the yield pushing up to -1.266%

from -1.610%.

- TIMING: Results are due shortly after the auction closes at 0845GMT