The Spanish Treasury aims to issue between three and four billion euros in two-, three- and five-year bonds ahead of the European Central Bank's (ECB) monetary policy meeting on Wednesday.

Those bonds at the shorter end of the yield curve are precisely the ones that the ECB would purchase if Spain requests a bailout.

It is the first Spanish debt auction since the country approved its budget for 2013, which includes the country's most ambitious austerity measures ever.

It is also its first auction after stress tests revealed that the nation's banks will need €59.3bn in capital.

Spain will auction off the following:

- Notes maturing on October 31st 2015 with a coupon rate of 3.75%.

- Notes maturing on October 31st 2014 with a coupon rate of 3.30%.

- Notes maturing on July 30th 2017 with a coupon rate of 5.50%.

Analysts at UniCredit have warned that there will probably be pressure on the long end of the yield curve.

The yields for Spanish two-year bonds are 50 basis points above the five-month low set on September 7th, one day after the ECB announced its bond purchase programme.

MG

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