PREVIEW: The Japanese MOF will today...>

JGBS AUCTION: PREVIEW: The Japanese MOF will today sell Y2.1tn of 10-Year JGB's

re-opening JB#357. The MOF last sold 10-Year debt on January 7, the auction drew

cover of 3.704x at an average yield of -0.005%, average price of 101.05, high

yield of -0.003%, low price of 101.03, with 78.8770% of bids allotted at the

high yield.

- 10-Year yields sit at the richer end of the range seen since the most recent

round of 10-Year supply, after coronavirus worry drove the benchmark back into

negative territory, last -0.053%, off lows of -0.079%. The recent richening of

the space resulted in the BoJ trimming the number of 10-25+ Year Rinban

operations it carries out per month, as Kuroda and co look to promote a steeper

yield curve. Near-term cuts to purchases in the 5-10 Year bucket are deemed low

by most. The recent richening may result in a wider tail at this month's

auction, although Coronavirus worry could support the bid itself.

- 10-Year ASW spreads sit around the top of their recent range.

- The 5-/10-/15-Year fly sits around the middle of its recent range.

- Results due at 0335GMT/1235JST.