Spain will tap the market.....>

SPAIN AUCTION PREVIEW: Spain will tap the market for a combined E4.75-8.25bln on

Thursday. On offer are the 0.05%

Oct-21 Bono, 0.25% Jul-24 Bono and the 1.85% Jul-35 Obli with a target volume of

E4.5-5.5bln as well as the 0.70% Nov-33 ObliEi for E0.25-0.75bln.

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

bid-to-cover): 0.05%

Oct-21 Bono (Oct 17 2019, E1.07bln, -0.45%, 1.86x); 0.25% Jul-24 Bono (Dec 5

2019, E1.62bln, -0.09%, 0.88x); 1.85% Jul-35 Obli (Sep 19 2019, E0.81bln, 0.65%,

1.73x); 0.70% Nov-33 ObliEi (May 9 2019, E0.48bln, 0.25%, 2.33x).

- RV/HISTORY: Mirroring developments across core EGBs, Spanish government bond

yields have ticked lower since the beginning of the year and spreads over bunds

have narrowed slightly. Following a broad recovery in market-based measures of

inflation expectations, breakevens have similarly started to edge lower. Trading

relative to the comparable EUR swap of Thursday's issues: 0.05% Oct-21 Bono

(-7bp); 0.25% Jul-24 Bono (+9bp); 0.85% Jul-35 Obli (+47bp).

- TIMING: Results are due out at 0945 GMT.