PREVIEW: The Japanese MOF will today...>

JGBS AUCTION: PREVIEW: The Japanese MOF will today sell Y400bn of 40-Year JGB's.

- The MOF last sold 40-Year debt on November 27, the auction drew cover of

3.853x at a high yield of 0.940%, low price of 95.41, with 57.2420% of bids

allotted at the high yield.

- 40-Year benchmark JGB yields have operated in a ~26bp range in the time since

the most recent auction, with market volatility driving investors into safe

havens around the new year period, although risk assets have regained some poise

in the time since. Yields last trade at the recent cycle low of 0.735%, with

demand for super-long Japanese paper continuing.

- FY-end "window dressing" may begin to creep in to the JGB space, and may spur

demand at today's auction, with the next round of 40-Year supply not due until

March 26.

- Results due at 0335GMT/1235JST