PREVIEW: The Japanese MOF will today...>

JGBS AUCTION: PREVIEW: The Japanese MOF will today sell Y900bn of 20-Year JGB's

re-opening #JB169. The MOF last sold 20-Year debt on August 20, the auction drew

cover of 3.809x at an average yield of 0.110%, average price of 103.67, high

yield of 0.114%, low price of 103.60, with 32.8061% of bids allotted at the high

yield.

- Global market dynamics, optimism surrounding the Sino-U.S. trade spat and BoJ

Governor Kuroda's verbal guidance allowed outright yields to correct from recent

lows, to last deal at 0.211%, 21bp or so from the cycle low.

- Underlying worry re: well documented global risk factors may support demand

this time out, given the back up in yields, although the impending BoJ & FOMC

MonPol decisions may muddy the waters a little. Dealer suggestions of larger

than average short-covering demands may also support, in addition to the

proximity to the end of the first half of the Japanese FY. 20-Year paper looks

relatively fair in RV terms vs. shorter dated JGBs & a little dear vs. longer

dated JGBs. The 10-/20-/30-Year has moved away from recent lows.

- Results due at 0435BST/1235JST