PREVIEW: The Japanese MOF will today...>

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

reopening #JB61.

- The MOF last sold 30-Year debt on February 7, the auction drew cover of 4.719x

at an average yield of 0.587%, average price of 102.85, high yield of 0.589%,

low price of 102.80, with 63.1931% of bids allotted at the high yield.

- 30-Year benchmark JGB yields have operated in a ~9bp range in the time since

the most recent auction, with the 5s30s curve moving away from multi-year flats

over the last couple of weeks, aided by a tepid liquidity enhancement auction

for super-long JGBs and a reduction in the size of the BoJ's 10-25 Year Rinban

purchases. Benchmark 30-Year yields last trade at 0.626%, ~2.5bp from the highs

of the aforementioned range. Focus on lifer demand into FY end continues to

garner interest with some suggesting that lifers are underweight super-long

JGBs. 20s look attractive vs. 30s in ASW & Z-spread terms at the margin, with

30s also offering a less attractive carry & roll proposition. The 20-/30-Year

spread has moved away from cycle lows over the last couple of weeks.

- Results due at 0335GMT/1235JST