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PREVIEW: The Japanese MOF will today...>

JGBS AUCTION
JGBS AUCTION: PREVIEW: The Japanese MOF will today sell Y400bn of 40-Year JGB's
re-opening JB#12.
- The MOF last sold 40-Year debt on May 28, the auction drew cover of 3.874x at
a high yield of 0.535%, low price of 98.75, with 84.4117% of bids allotted at
the high yield.
- Outright 40-Year yields sit 11bp or so back from the cycle low witnessed in
June, with yesterday's modest concession potentially set to help demand at
today's auction.
- The 30-/40-Year yield spread has recovered from its recent cycle trough and
sits around the mid-point of its recent range.
- 40-Year paper sits at the cheaper end of its recent range in ASW terms.
- The final round of this month's 25+ Year BoJ Rinban operations takes place on
Friday, which may also support demand this time out.
- Results due at 0435BST/1235JST.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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