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PREVIEW: The Japanese MOF will today...>

JGBS AUCTION
JGBS AUCTION: PREVIEW: The Japanese MOF will today sell Y700bn of 30-Year JGB's,
re-opening JB#60.
- The MOF last sold 30-Year debt on November 13, the auction drew cover of
3.986x at an average yield of 0.874%, average price of 100.60, high yield of
0.876%, low price of 100.55, with 64.4188% of bids allotted at the high yield.
- 30-Year benchmark JGB yields have operated in an ~11bp range in the time since
the most recent auction, and last operate near the bottom of that range at
0.795%. Outright yield levels are someway shy of the 1.0% that many life
insurers & pension funds deem sufficient return on investment.
- 20-Year paper looks a little more attractive than 30-Year paper based on ASW &
Z-spread terms, as well as from a carry & roll perspective.
- 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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