PREVIEW: The Japanese MOF will today...>

JGBS AUCTION: PREVIEW: The Japanese MOF will today sell Y1.9tn of 5-Year JGB's

opening JB#142. The MOF last sold 5-Year debt on December 10, the auction drew

cover of 4.022x at an average yield of -0.083%, average price of 100.88, high

yield of -0.066%, low price of 100.80, with 43.9215% of bids allotted at the

high yield.

- 5-Year yields have pushed back towards the recent range highs over the last

few sessions, after matters in the Middle East & the trade war created some

volatility in the early part of 2020. Benchmark 5s last yield -0.080%. The

concession over the last couple of sessions may support supply.

- The 2-/5-/10- Year fly trades closer to the top of its recent range than the

low.

- The BoJ's focus on a steeper JGB curve and its apparent on hold stance should

provide little impetus for this zone of the curve in the immediate term.

- 5-Year ASW spreads have edged back from the peak seen just after the Dec

auction, and sit around the midpoint of the range seen in that time.

- Results due at 0335GMT/1235JST