PREVIEW: The Japanese MOF will today...>

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

opening JB#353.

- The MOF last sold 10-Year debt on December 04, the auction drew cover of

3.820x at an average yield of 0.074%, average price of 100.25, high yield of

0.077%, low price of 100.22, with 8.7628% allotted at the high yield.

- 10-Year benchmark JGB yields hit the lowest levels observed since November

2016 in early 2019 dealing, as the space reacted to worry over the global

economy during the New Year period. 10-Year yields have now moved back into

marginal positive territory, providing some concession over the last couple of

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.