Spain's Tesoro.........>

SPAIN T-BILL AUCTION PREVIEW: Spain's Tesoro Publico re-open 3-month Nov 17,

2017 Letra and 9-month May 11, 2018 Letra on Tuesday for a combined amount of

between E2bln to E3bln. 

- RV: For the 3-month Nov 17, 2017 Letra, mid-yield is currently trading at

-0.439%, towards the top of its 1-month range of between -0.414% and -0.477%. As

for the 9-month May 11, 2018 Letra, the mid-yield is seen at -0.40% which is

close to the bottom end of its 1-month range of between -0.34% and -0.402%,

according to Tradeweb.

- HISTORY: For comparison the last 3-month auction back on Jul 18, the Tesoro

sold E605mln at average yield of -0.488% with cover 3.55 times. At the last

9-month Letra auction also on Jul 18, the Tesoro sold E2.376bln at average yield

-0.391% and covered 2.02 times.

- REDEMPTION: There was a Spain Letra redemption of E8.268bln last week and with

E4.47bln 6-month and 12-month Letra allotted last week, leaves net cash flow

negative to the tune of E3.798bln which is seen underpinning demand.