PREVIEW: The Japanese MOF will today...>

JGBS AUCTION: PREVIEW: The Japanese MOF will today sell Y900bn of 20-Year JGB's

re-opening JB#171. The MOF last sold 20-Year debt on February 20, the auction

drew cover of 3.985x at an average yield of 0.232%, average price of 101.27,

high yield of 0.234%, low price of 101.25, with 81.9560% of bids allotted at the

high yield.

- Line last yields 0.254%, 10bp or so off the recent lows, with concession ahead

of today's supply providing a little bit of cheapening over the past couple

sessions, in lieu of some weak JGB auctions over the last week or so. That being

said, the 20-Year zone has a broader base of investors vs. longer dated

alternatives, which may support demand on the back of relatively light

positioning (per desk reports) and lower secondary market liquidity. Although,

the BoJ's desire for a steeper curve may provide some counter, in addition to

the broader round of uncertainty/volatility, which is the real wildcard.

- 20-Year ASW spreads sit around recent wides.

- The 10-/20-/30-Year fly sits in the upper end of its YtD range.

- Results due at 0335GMT/1235JST.