PREVIEW: The Japanese MOF will today...>

JGBS AUCTION: PREVIEW: The Japanese MOF will today sell Y2.2tn of 10-Year JGB's,

re-opening JB#352.

- The MOF last sold 10-Year debt on November 01, the auction drew cover of

4.330x at an average yield of 0.135%, average price of 99.65, high yield of

0.137%, low price of 99.63, with 12.9543% allotted at the high yield.

- 10-Year benchmark JGB yields sit at the lowest level observed since late

July/early August, when the BoJ tweaked its YCC settings, at 0.075%,

consolidating below the heavily watched 0.1% in recent sessions.

- In RV terms 10-Year paper looks attractive vs. 7s on a z-spread basis, the

same can be said for ASW metrics. The sector continues to look rich vs. longer

dated alternatives in RV terms. The carry & roll aspect is very attractive

against shorter dated maturities, and only marginally less attractive than

20-Year paper on this basis.

- Results due at 0335GMT/1235JST.