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

SPAIN T-BILL AUCTION PREVIEW: Spain's Tesoro Publico re-open Oct 12, 2018 Letra

and Apr 5, 2019 Letra on Tuesday for between E2.0bln to E3.0bln. 

- RV: For the Oct 12, 2018 Letra, ask-yield is currently trading at -0.558%

according to Tradeweb, towards the bottom end of its 1-month range of between

-0.424% and -0.619% and is -9.5bps vs Eonia and looks cheap on the curve. As for

the 9-month Apr 5, 2018 Letra, the ask-yield is seen at -0.495% at the bottom

end of its 1-month range of between -0.365% and -0.495% and is -2.8bp vs Eonia

and looks around fair value.

- HISTORY: For comparison the last 3-month auction back on Jun 19, the Tesoro

allotted E470mln at average yield of -0.51% with cover 4.48 times. At the last

9-month Letra auction also on Jun 19, the Tesoro allotted E1.95bln at average

yield -0.389% and covered 2.27 times.

- REDEMPTION: There was a Spain Letra redemption of E7.121bln last week and with

E4.73bln allotted in 6-month and 12-month Letras, still leaves E2.391bln to be

re-invested which is seen underpinning demand.

- TIMING: Results are due to be announced at around 0840GMT.