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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
- 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
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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