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

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

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

auction. JB#1-16, #70-150 & #334-353 will be on offer. The previous enhanced

liquidity auction covering these maturities was held on May 20. The auction saw

Y600bn offered and was covered 3.374x at an average spread of +0.008%, and a

high spread of +0.009% with 90.0458% of the bids allotted at the high spread.

- The most recent conventional 10-Year auction wasn't particularly well

received, and came after the BoJ cut the frequency of its 10-25 Year JGB

operations to 3x in June, from the previous 4x. However, the first operation

covering the bucket in June saw the Bank boost the size of its purchases by

Y40bn to Y200bn. If the BoJ leaves the size of its 10-25 Year JGB purchases

steady during the remainder of the month it will purchase Y40bn less 10-25 Year

JGBs in June than it did in May.

- Results due at 0435BST/1235JST