Live Updates > Live Update Details
2026-11-04 21:20:26
[Spain to Issue Three Bonds on Thursday, Market Expects Strong Demand] ⑴ Spain will issue €4.5 billion to €5.5 billion in 5-year, 10-year, and 15-year bonds on Thursday. ⑶ This issuance is expected to perform well due to factors including strong index dynamics at the end of last month, a relatively small issuance size, and the generally strong performance of Spanish bond auctions. ⑷ Last Friday, approximately €130 billion in Eurozone bonds fell below the minimum one-year maturity index and benchmarks based on these indices, while the monthly average is around €75 billion, making it the largest monthly issuance this year. ⑸ With more funds flowing into the benchmarks due to the sale of these bonds, this auction presents a good opportunity for benchmark investors to buy in bulk, especially as primary issuances in November and December will begin to decrease. ⑹ The smaller size of this auction compared to the normal level for the first Spanish auction of the month further supports demand. ⑺ Spanish auctions typically perform well, also due to factors such as the value of greenshoe options, which are naturally higher in the current volatile market than in calmer times, and the fact that these options also cover Friday's US jobs report. (8) The relative lack of liquidity in the Spanish secondary market makes auctions more competitive as a venue for bulk purchases, and Spanish bonds can also serve as an alternative to bonds from other countries with similar yields but fewer issuances. (9) Finally, issuers are clearly skilled in choosing which types of bonds to sell; the choice to issue additional 5-year bonds may be one indication of this.
