PREVIEW: The Japanese MOF will today...>

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.