Spain sells EUR 5.634bln vs exp. EUR 5-6bln 2.35% 2029, 2.60% 2031 and 3.30% 2036 Bono and EUR 0.639bln vs exp. EUR 0.25-0.75bln 2.05% 2039 I/L Bono

• 2.35% 2029: b/c 2.23x (prev. 2.06x), average yield 3.079% (prev. 2.867%)
• 2.60% 2031: b/c 2.26x (prev. 2.31x), average yield 3.255% (prev. 3.005%)
• 3.30% 2036: b/c 2.29x (prev. 2.04x), average yield 3.736% (prev. 3.435%)
• 2.05% 2039 I/L: b/c 1.74x (prev. 1.85x), real yield 1.822% (prev. 1.715%)

Spanish auctions of this size sit comfortably within the targeted range, and the pattern here, with bid-to-cover ratios firming on the nominal lines while the inflation-linked tranche drew slightly softer demand, is consistent with a market that clears on conventional duration but prices inflation protection more cautiously when real yields back up. Average yields rising versus the prior taps of the same lines is the mechanical consequence of where the curve has moved between auctions rather than a demand signal; the cleaner tell on these results is the cover ratio against its own previous reading, and on that basis the nominal Bonos were absorbed without strain. The modest uptick in real yield on the linker alongside a lower cover is the sort of outcome that has historically reflected breakeven positioning and index-linked supply indigestion rather than credit concern, though the sample of comparable linker auctions is small. Spanish paper trades primarily as a spread product against the core, and auctions alone have rarely moved the Bono-bund differential durably; what has done so in past episodes is the cumulative supply calendar, ECB guidance on reinvestments and backstop frameworks, and the domestic political backdrop. The follow-ons worth noting are any concession rebuilt into the next syndication or auction, dealer bid-to-cover trends across the southern European peer set at concurrent supply, and whether the linker softness repeats, which would matter more as a pattern than as a single print.