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PREVIEW: The Japanese MOF will today...>

JGBS AUCTION
JGBS AUCTION: PREVIEW: The Japanese MOF will today sell Y1.0tn of 20-Year JGB's.
- The MOF last sold 20-Year debt on August 21, the auction drew cover of 4.660x
at an average yield of 0.607%, average price of 98.10, high yield of 0.610%, low
price of 98.05, with 15.0048% allotted at the high yield.
- The 20-Year yield has traded in a ~4.5bp range since the most recent auction,
last trading at 0.628%. ~1.5bp off of the highs.
- The BOJ's Rinban operations remain supportive of the 20-Year space, with the
operations covering the sector not subject to any of the tweaks witnessed thus
far in September.
- Short covering interest may support demand at the auction, with the sector's
carry also looking somewhat attractive. The line appears to be somewhat fairly
valued in relative terms.
- Results due at 0435BST/1235JST.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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