AUCTION PREVIEW: Spanish EUR 3-4bln 0.05% 2021, 1.45% 2027 and 5.75% 2032 Bond Auction

Analysts at IFR note, decent natural concession for all issues with a small amount of micro-RV for the 3-yr and 15-yr, and all issues have cheapened up against Italy, so there are also cross market switching opportunities. Therefore, despite a slight risk-off bias today, IFR foresee the auctions passing without too much issue. The proximity to tomorrow’s ECB rate decision however may result in some investors wanting to keep their powder dry before getting involved.

In terms of historical data:

0.05% 2021 prev. b/c 2.55 and average yield -0.022%

1.45% 2027 prev. b/c 1.46 and average yield 1.41%

5.75% 2032 prev. b/c 1.47 and average yield 1.925%

Bids are submitted by 0930GMT and results are published shortly after

14 Dec 2017 - 07:30- Fixed Income- Source: RANsquawk

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