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PREVIEW: The Japanese MOF will today...>

JGBS AUCTION
JGBS AUCTION: PREVIEW: The Japanese MOF will today sell Y2.0tn of 2-Year JGB's
opening #JB410. The MOF last sold 2-Year debt on January 30, the auction drew
cover of 4.489x at an average yield of -0.147%, average price of 100.496, high
yield of -0.147%, low price of 100.495, with 75.9148% of bids allotted at the
high yield.
- Coronavirus worry has added to the worry surrounding the domestic economy,
leaving 2-Year JGBs at the richest outright yield levels seen since early
November, last -0.219%.
- 2-Year swap spreads sit in the mid to low region of their YtD range.
- The BoJ's want for a steeper yield curve limits the scope for Rinban
adjustments in the shorter end of the curve, which should continue to support
demand at auction.
- The 2-/5-Year yield spread sits around 1.0bp off its YtD flats.
- Results due at 0335GMT/1235JST.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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