PREVIEW: The Japanese MOF will today...>

JGBS AUCTION: PREVIEW: The Japanese MOF will today sell Y2.000tn of 2-Year JGB's

opening JB#407. The MOF last sold 2-Year debt on November 28, the auction drew

cover of 4.130x at an average yield of -0.189%, average price of 100.581, high

yield of -0.183%, low price of 100.570, with 69.1516% of bids allotted at the

high yield.

- 2-Year JGB yields are threatening a break above the 2017/18 highs, last

-0.088%, which has been facilitated by the easing of global trade tensions and

the BoJ's adoption of a wait and see attitude over the past couple of months,

with the Bank monitoring how the latest round of fiscal stimulus filters through

the economy.

- The 2-/5-Year yield spread has gradually steepened since late September,

touching a YtD steep in the process, while 5s also present a "less negative"

carry & roll down prop vs. 2s.

- Results due at 0335GMT/1235JST.