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 February 4, the auction

drew cover of 3.635x at an average yield of -0.051%, average price of 101.50,

high yield of -0.049%, low price of 101.48, with 77.1508% of bids allotted at

the high yield.

- The recent run of richening on the back of broader based risk-off flows

stemming from coronavirus worry, and to a lesser extent, a softer domestic

economic backdrop, saw 10-Year yields hit levels not seen since early November

on Monday, although 10-Year paper has cheapened by 8.0bp vs. extremes, to last

yield -0.098%.

- Participants may be a little wary heading into supply, given the recent

richening, volatile price action surrounding auctions in the backend of last

year and limited take up in today's repo operations offered by the BoJ.

- The 5-/10-/20-Year JGB fly sits towards the upper end of its 12 month range,

with the 10-/20-Year spread sitting within a couple of bp of the recent flats.

- Results due at 0335GMT/1235JST.