Spain will tap the market.....>

SPAIN AUCTION PREVIEW: Spain will tap the market for E3-4bln on Thursday. On

offer are the 0.25% Jul-24 Bono, 0.60% Oct-29 Obli and the 3.45% Jul-66 Obli.

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

bid-to-cover): 0.25% Jul-24 Bono (7 Nov, E0.97bln, -0.20%, 2.30x); 0.60% Oct-29

Obli (7 Nov, E1.0bln, 0.30%, 2.30x); 3.45% Jul-66 Obli (5 Sep, E1.0bln, 1.45%,

1.23x). 

- RV/HISTORY: Spanish yields have ground higher since August as global risk

perceptions have eased. However, fresh scepticism over a US-China trade deal has

underpinned a modest rally in SPGBs this week. Spreads over bunds have widened

with the 10-year differential inching up to 81bp from a November low of 61bp.

Spreads over comparable EUR swap: 0.25% Jul-24 Bono (+16bp), 0.60% Oct-29 Obli

(+36bp) and the 3.45% Jul-66 Obli (+164bp).

- TIMING: Results are due out around 0945GMT.