* Treasury to sell bonds due 2015, 2017, 2021
* Auction results due around 0940 GMT
* Spain seeks to raise 2.5-3.5 billion euros
MADRID, Nov 22 Spain will start tapping markets
on Thursday for money to cover its 2013 financing needs, a
burden that many investors think will eventually force it to
seek aid from its euro zone partners.
After meeting this year's financing needs on Nov. 8, Spain
will sell three bonds on Thursday, seeking to raise between 2.5
billion and 3.5 billion euros ($3.2 billion-$4.5 billion).
The country's funding needs rise to 207 billion euros in
2013 from 186 billion euros this year, but could go higher still
if the government overshoots its deficit target of 6.3 percent
of gross domestic product this year and 4.5 percent next year.
The central government is also expected to help struggling
regional governments, cut out of debt markets, which could add a
further 40 billion euros.
"Spain missing its deficit targets could see issuance
projections revised higher which could put greater strain on the
(Treasury) as it bids to retain primary market access," analyst
at 4Cast Jo Tomkins said.
"The market is all too aware of the tough challenges that
lie ahead for Spain but it seems the lion's share in the market
are reading bad news as motivation for a Spanish aid request."
Spain's economy has been in recession for a year, the second
since 2009, and is not expected to return to growth until late
next year at the earliest. Some 25 percent of Spanish workers
are unemployed and deep spending cuts and tax hikes have fuelled
increasingly violent protests across the country.
However, Spain's risk premium versus Germany has fallen to
around 430 basis points from above 650 bps since the European
Central Bank said it would buy up debt on the open market to
hold down interest rates for any country that signs up for aid.
Madrid has said it wants to be sure the ECB measure would
reduce financing costs, citing a spread of 200 bps as more
representative of economic fundamentals, though the bank's head
Mario Draghi said he could not make such a promise.
Spain has raised funds on the market this year but has had
to pay investors increasingly high yields. However, market
pricing suggests yields on Thursday will be similar to previous
auctions for the bonds on sale, which mature on Oct. 31, 2015,
July 30, 2017, and April 30, 2021.