PREVIEW: The Japanese MOF will today...>

JGBS AUCTION: PREVIEW: The Japanese MOF will today sell Y400bn of 10-Year JGBi's

re-opening JB#24. The MOF last sold 10-Year JGBi's on Aug 8, the auction drew

cover of 3.841x at a high yield of -0.329% and low price of 104.25, with

86.6906% of bids allotted at the high yield.

- Japanese 10-Year breakevens are threatening to break above the upper end of

the range that they have operated in since the most recent 10-Year JGBi auction,

aided by the "mood music" surrounding the Sino-U.S. trade war.

- Domestic inflation conditions remain benign, with underlying CPI showing no

signs of making a notable move higher.

- Also worth noting that the BoJ lifted the size of its JGBi purchases in its

Rinban operations plan for the month of November, up by 5bn to 30bn per op,

which equates to ~Y10bn in a typical month. The MoF has also noted that it

intends to conduct JGBi buybacks every month (previously bi-monthly), starting

this quarter. Both of these changes could support demand this time out.

- Results due at 0335GMT/1235JST.