PREVIEW: The Japanese MOF will today...>

JGBS AUCTION: PREVIEW: The Japanese MOF will today sell Y2.1tn of 2-Year JGB's.

- The MOF last sold 2-Year debt on September 28, the auction drew cover of

4.374x at an average yield of -0.112%, average price of 100.425, high yield of

-0.109%, low price of 100.420, with 10.5279% allotted at the high yield.

- The benchmark 2-Year yield has traded in a ~1.5bp range since the most recent

auction, last trading at -0.124%, near the bottom of that range.

- 2-Year paper looks slightly more attractive than 3-Year paper in ASW &

Z-Spread terms, with the carry & roll slightly less appealing than 3s.

- As a reminder, Y2.3302tn worth of redemptions from 2-Year paper was issued

last week.

- Results due at 0435BST/1235JST.