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

SPAIN T-BILL AUCTION PREVIEW: Spain's Tesoro Publico re-open 6-month May 11,

2018 Letra and issue a new 12-month Nov 16, 2018 Letra on Tuesday for a combined

amount of between E5.5bln to E6.5bln. 

- RV: For the 6-month May 11, 2018 Letra, bid-yield is currently see at -0.376%,

towards the bottom end of its 1-month range of between -0.307% and -0.419%. As

for the new 12-month Nov 16, 2018 Letra, the grey market is indicating a

mid-yield of around -0.380% which is 1.6bp discount to the Oct 12, 2018 Letra

according to Tradeweb.

- HISTORY: For comparison the last 6-month auction back on Oct 10, the Tesoro

sold E860mln at average yield of -0.373% with cover 2.94 times. At the last

12-month Letra auction also on Oct 10, the Tesoro sold E4.08bln at average yield

-0.31% and covered 1.68 times.

- REDEMPTION: There is a Spain Letra redemption of E7.243bln this week which

could leave net cash flow negative to the tune of E743mln which is seen

underpinning demand.

- TIMING: Results are due to be announced at around 0940GMT.