PREVIEW: The Japanese Ministry of......>

JGBS AUCTION: PREVIEW: The Japanese Ministry of Finance (MOF) will today auction

Y600bn of JGBs with 5-15.5 years until maturity in a liquidity enhancement

auction.

- The previous enhanced liquidity auction covering these maturities was held on

October 23. The auction was covered 2.926x at an average spread of +0.001%, and

a high spread of +0.002% with 64.2026% of the bids allotted at the high spread.

Y600bn worth of paper was offered.

- The takedown was dominated by 10-Year JB#338-341, with those lines accounting

for ~Y325bn of the issuance.

- Worth highlighting that the benchmark 10-Year JGB has crossed back below 0.1%

in recent days, marking the first move below this mark since August, which could

act as deterrent for participants. Conversely, it may actually drive them to

seek higher yields in off the run paper.

- Results due at 0335GMT/1235JST.