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 JB#355. The MOF last sold 10-Year debt on June 4,

the auction drew cover of 3.986x at an average yield of -0.106%, average price

of 102.04, high yield of -0.103%, low price of 102.01, with 15.1237% of bids

allotted at the high yield.

- 10-Year JGB yields currently operate ~5bp below the average yield seen at the

prior auction, at -0.151%, after printing as low as -0.192% in June as the

dovish re-pricing of global central banks took hold of global bond markets.

Worth remembering that the BoJ left the purchasing band & frequency of its 5-10

Year Rinban ops unchanged for the month of July, while it lowered the upper end

of 10-25 Year purchase band by Y50bn to Y250bn, leaving the frequency of

purchases covering the bucket unchanged (most recent operation size is Y200bn).

- 10-Year ASW spreads have edged back from recent lows.

- The 5-/10-/20-Year fly sits 5bp or so back from the peak of its 12-month

range.

- Results due at 0435BST/1235JST.