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

SPAIN AUCTION PREVIEW: Spain's Tesoro Publico re-opens SPGB 0.05% Jan-21, 4.65%
Jul-25 and 1.45% Oct-27 and 2.9% Oct-46 on Thursday for an indicative size of
- BACKGROUND: Domestic politics is ugly and ill-timed for this auction with the
Catalan deadline on Thursday. There is a E17bln of Spanish redemptions on 31
- RV/HISTORY: There is too much political noise to say whether Spanish paper
looks cheap relative to swaps or other markets, but Spanish debt has not
underperformed much. So far, Catalan risks have hurt the long end of Spain
slightly more than the front end on a slow-burn of declining credit quality.
There is no liquidity threat that might cause actors to look closer at prices.
So, incoming redemptions might assist people in targeting the lower duration of
the 0.05% Jan-21, even if the spread to France is quite tight. 
- RESULTS: Auction cut-off is 0830GMT, results due around 0840GMT.

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