PREVIEW: The Japanese MOF will today...>

JGBS AUCTION: PREVIEW: The Japanese MOF will today sell Y2.0tn of 5-Year JGB's

reopening #JB138. The MOF last sold 5-Year debt on February 13, the auction drew

cover of 4.842x at an average yield of -0.151%, average price of 101.23, high

yield of -0.149%, low price of 101.22, with 15.4016% of bids allotted at the

high yield. 5-Year benchmark JGB yields have operated in a ~5bp range in the

time since the most recent auction, last trading around the middle of that range

at -0.155%.

- 5s look attractive vs. 7s in ASW & Z-spread terms, although both trade towards

their most attractive levels in 3 months, based on the aforementioned metrics.

7s offer a better carry & roll perspective than 5s.

- The BoJ's March Rinban plan saw it lower the number of purchase dates for 5-10

Year paper (4 from 5), while March's first round of Rinban ops covering the

bucket saw the bank lift the nominal amount of purchases by Y50bn. If the BoJ

leaves its 5-10 Year JGB purchase size unch. for the remainder of March, it will

purchase Y230bn less 5-10 Year JGBs during March vs. prev. purchase schedule.

- Results due at 0335GMT/1235JST