PREVIEW: The Japanese MOF will today...>

JGBS AUCTION: PREVIEW: The Japanese MOF will today sell Y2.0tn of 2-Year JGB's

opening JB#404.

- The MOF last sold 2-Year debt on July 25, the auction drew cover of 4.707x at

an average yield of -0.211%, average price of 100.625, high yield of -0.208% ,

low price of 100.620, with 64.5900% of bids allotted at the high yield.

- Outright 2-Year yields last trade ~2bp back from their cycle low which was

registered on Monday, printing at -0.301% at writing.

- The 2-/5-Year spread continues to look flat and sits 2.5bp back from the

recent low at -5.5bp. However, a lack of inflationary pressure coupled with the

ongoing trade war and global uncertainty holds little in the way of solace for

those looking for notable steepening.

- Results due at 0435BST/1235JST