PREVIEW: The Japanese MOF will today...>

JGBS AUCTION: PREVIEW: The Japanese MOF will today sell Y2.1tn of 10-Year JGB's,

representing the opening of #JB354.

- The MOF last sold 10-Year debt on March 05, the auction drew cover of 4.251x

at an average yield of -0.002%, average price of 101.00, high yield of -0.000%,

low price of 100.98, with 74.5124% of bids allotted at the high yield. Outright

10-Year yields sit ~3.0bp off of their YtD low (last -0.070%), which coincided

with the lowest level observed since '16 & represents the old lower limit of the

BoJ's permitted trading band. Worries over the global economy & dovish pivots

from a swathe of central banks supported major global bond instruments in March,

although strong data out of China & optimism re: U.S.-China trade matters has

allowed some retracement to creep in over the past couple of sessions.

- 10-Year JGBs trade at the richer end of their recent ASW & Z-spread ranges,

looking particularly rich on ASW. The aforementioned bout of risk-off flows

pressured the 2-/10-Year & 10-/20-Year yield spreads to the lowest levels seen

since '16, with both metrics sitting just above their recent lows at writing.

- Results due at 0435BST/1235JST