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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 JB#413. The MOF last sold 2-Year debt on April 23, the auction drew
cover of 5.429x at an average yield of -0.140%, average price of 100.483, high
yield of -0.136%, low price of 100.475, with 25.1523% of bids allotted at the
high yield.
- 2-Year paper last yields -0.144%, closer to the cheaper end of the outright
YtD range.
- Pressure from the increased issuance burden should at least be partially
offset by BoJ purchases when the size of auctions is ramped up, with the BoJ's
desire for a steeper yield curve well documented.
- 2-Year ASW spreads hover around the middle of their recent range.
- The 2-/5-Year yield spread hovers around the middle of the range observed
since March's bout of vol.
- Results due at 0435BST/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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