Tomorrow, Spain taps..........>

SPAIN AUCTION PREVIEW: Tomorrow, Spain taps E3.5-E4.5bln of SPGB 0.45% Oct-22,

SPGB 1.45% Oct-27, SPGB 4.9% Jul-40 alongside E0.25-0.75bln of the SPGBei 0.65%

Nov-27.

- BACKGROUND: On the political front the Catalan tensions appear to be abating

with the Bund-Bonos spread tightening considerably over the past few days. There

was E16.8bln of redemptions from Spain, which was also seen supporting the rally

in Spanish bonds.     

- RV/HISTORY: Mid yield on the 0.45% Oct-22 Bonos currently seen at 0.336%,

having rallied from 0.443% since Friday`s high and approximately 24.5bp over

October.  The 1.45% Oct-27 Bonos is currently seen at 1.463% having rallied from

1.610% 37bp over October. And finally the 4.9% Jul-40 Bonos is currently seen at

2.608% after having rallied approximately 28bp over the month of October. The

average cover over the last six auctions is 2.12x, 1.73x and for the linker the

last cover was 1.94x.   

- RESULTS: Auction bidding closes at 0930GMT with results around 0940GMT.