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

SPAIN T-BILL AUCTION PREVIEW
SPAIN T-BILL AUCTION PREVIEW: Spain's Tesoro Publico re-open 6-month Jan 18,
2018 Letra and issue a new 12-month Jul 12, 2019 Letra on Tuesday for a combined
amount of between E4bln to E5bln. 
- RV: For the 6-month Jan 18, 2018 Letra, bid-yield is currently see at -0.371%,
towards the middle of its 1-month range of between -0.347% and -0.408% according
to Tradeweb and is -5bp vs Eonia. As for the new 12-month Jul 12, 2019 Letra,
the grey market is indicating a mid-yield of around -0.35% which is 1.5bp
discount to the Jun 14, 2019 Letra and +0.65bp vs Eonia.
- HISTORY: For comparison the last 6-month auction back on Jun 6, the Tesoro
allotted E930mln at average yield of -0.468% with cover 2.74 times. At the last
12-month Letra auction also on Jun 6, the Tesoro sold E4.545bln at average yield
-0.348% and covered 2.59 times.
- REDEMPTION: There is a Spain Letra redemption of E7.1bln this week which could
leave net cash flow negative to the tune of E2.1bln which is seen underpinning
demand.
- TIMING: Results are due to be announced at around 0840GMT.

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