PREVIEW: The Japanese MOF will today...>

JGBS AUCTION: PREVIEW: The Japanese MOF will today sell Y700bn of 30-Year JGB's,

opening JB#61.

- The MOF last sold 30-Year debt on December 11, the auction drew cover of

3.780x at an average yield of 0.794%, average price of 102.55, high yield of

0.796%, low price of 102.50, with 82.4455% of bids allotted at the high yield.

- 30-Year benchmark JGB yields have operated in a ~15bp range in the time since

the most recent auction, after financial market volatility & questions re: the

global economic backdrop drove demand for JGBs. Benchmark 30-Year yields last

operate at 0.706%, 5bp or so from the range low, someway shy of the 1.0% that

many life insurers & pension funds deem sufficient.

- 30-Year paper looks a little more attractive than 20-Year paper based on ASW &

Z-spread terms, although 20-Year paper offers a more attractive carry & roll

proposition. There is usually a degree of seasonal demand for longer dated JGBs

in Q1 as investors look to FY end.

- Results due at 0335GMT/1235JST.