PREVIEW: The Japanese MOF will today...>

JGBS AUCTION: PREVIEW: The Japanese MOF will today sell Y2.1tn of 2-Year JGB's.

- The MOF last sold 2-Year debt on December 26, the auction drew cover of 5.360x

at an average yield of -0.127%, average price of 100.454, high yield of -0.125%,

low price of 100.450, with 65.5555% allotted at the high yield.

- The benchmark 2-Year yield has traded in a ~6.5bp range since the most recent

auction, with global risk aversion pushing yields lower around the New Year

period. Benchmark 2-Year yields are last trading at -0.163%, near the bottom of

the aforementioned range.

- 2-Year paper looks slightly more attractive than 3-Year paper in ASW terms,

but looks a little richer on a Z-spread basis. 2s' carry & roll proposition is

slightly less appealing than 3s.

- Results due at 0335BST/1235JST.