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PREVIEW: The Japanese MOF will today...>

JGBS AUCTION
JGBS AUCTION: PREVIEW: The Japanese MOF will today sell Y900bn of 20-Year JGB's
re-opening JB#172. The MOF last sold 20-Year debt on May 20, the auction drew
cover of 4.247x at an average yield of 0.332%, average price of 101.26, high
yield of 0.335%, low price of 101.20, with 36.3983% of bids allotted at the high
yield.
- 20-Year outright yields sit just shy of YtD cheaps, with focus in lieu of the
March vol. falling on the issuance burden stemming from the government's fiscal
support package, as well as the BoJ's desire for a steeper yield curve/actions
via Rinban to foster such a result.
- The 10-/20-/30-Year butterfly sits around the middle of the range observed
since the March vol.
- 20-Year ASW hover around the mid-point of the recent range.
- 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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