PREVIEW: The Japanese MOF will today...>

JGBS AUCTION: PREVIEW: The Japanese MOF will today sell Y700bn of 30-Year JGB's

re-opening JB#65. The MOF last sold 30-Year debt on January 9, the auction drew

cover of 3.655x at an average yield of 0.430%, average price of 99.18, high

yield of 0.433%, low price of 99.10, with 5.2076% of bids allotted at the high

yield.

- The line currently yields ~0.425%, ever so slightly richer than the average

yield seen at January's opening, ~9bp off recent richest levels as participants

start to look through the impact of the Coronavirus/expect the Chinese

authorities to limit the econ impact; although the global fallout remains in

question. The 5-/30-Year yield spread sits ~7bp off the recent lows, aided by

the BoJ reducing the number of Rinban operations covering the 25+ Year zone of

the curve in its February outline. Although this should have limited impact on

today's supply. Current yield levels should provide solid enough demand at

auction, with eyes on FY-end related buying.

- 30-Year ASW spreads sit at the widest levels seen in recent history.

- Results due at 0335GMT/1235JST.