PREVIEW: The Japanese MOF will today...>

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

reopening #JB353.

- The MOF last sold 10-Year debt on February 5, the auction drew cover of 4.798x

at an average yield of -0.013%, average price of 101.12, high yield of -0.012%,

low price of 101.11, with 61.9168% of bids allotted at the high yield.

- 10-Year benchmark JGB yields have operated in a ~5.5bp range in the time since

the most recent auction, moving back from the lowest levels seen since 2016 to

last sit at 0.000%, with the move aided by the BoJ adjusting its 5-10 Year

Rinban operation schedule for March, as well as an uptick in global equities.

- Concerns re: the health of the global economy could support demand at today's

auction, especially given the strength of last month's supply (yields are

flirting with positive levels at writing). Conversely, questions over the BoJ's

Rinban purchases (both in size & scope for further trimming) may limit demand.

- 10s look a little rich vs. 20s, particularly in ASW terms, although they do

offer a more attractive carry & roll proposition.

- Results due at 0335GMT/1235JST.