Spain sells EUR 5.315bln vs exp. EUR 5-6bln 2.60% 2031, 3.00% 2033, 3.40% 2036 Bono & EUR 0.728bln vs exp. EUR 0.25-0.75bln 2.05% 2039 I/L Bono

• 2.60% 2031: b/c 2.31x (prev. 1.79x) & average yield 3.005% (prev. 2.835%)
• 3.00% 2033: b/c 2.17x (prev. 1.83x) & average yield 3.188% (prev. 3.032%)
• 3.40% 2036: b/c 2.38x (prev. 1.81x) & average yield 3.542% (prev. 3.157%)
• 2.05% 2039 I/L: b/c 1.85x (prev. 1.81x) & real yield 1.715% (prev. 1.570%)

A multi-line Spanish auction that cleared with firmer demand metrics across the curve: cover ratios stepped up from the prior comparable sales on every tranche, while average yields rose in line with the broader back-up in European rates since the last auctions of these lines. The pattern here, stronger b/c at higher yields, is the normal one when concession has built into the tap; it reads as demand meeting supply at a cheaper level rather than genuine stress. Selling within the announced range at the top half keeps the Tesoro on its typical front-loaded issuance cadence, which has historically reduced the risk of supply indigestion later in the year. The linker tranche, small by design, is the less informative leg given its thinner bid base, though the higher real yield tracks the nominal move. Worth noting is the tail behaviour at the long end, where the 2036 line drew the highest cover despite the largest yield step-up, consistent with the usual pattern of duration demand appearing once yields reset. Follow-ons are the usual post-auction sequence: any compression of the Bono-Bund spread on the strong covers, and whether the next peripheral supply, typically the heavier test, is absorbed as cleanly.