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PREVIEW: The Japanese MOF will today...>

JGBS AUCTION
JGBS AUCTION: PREVIEW: The Japanese MOF will today sell Y2.0tn of 5-Year JGB's,
re-opening JB#137.
- The MOF last sold 5-Year debt on October 16, the auction drew cover of 4.884x
at an average yield of -0.055%, average price of 100.77, high yield of -0.053%,
low price of 100.76, with 40.2505% allotted at the high yield.
- The benchmark 5-Year yield has traded in a ~4.5bp range since the most recent
auction, last trading at -0.087%, near the bottom of that range.
- The sector looks attractive vs. benchmark 7-Year paper in ASW terms. The same
can be said for a z-spread approach.
- Results due at 0335GMT/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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