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The Japanese Ministry of Finance.......>

JGBS AUCTION
JGBS AUCTION: The Japanese Ministry of Finance (MOF) will today auction Y2.3tln
0.1% 10-Year Sep 20 2027 JGB's:
- The MOF last sold 10-Year bonds on September 5, the auction drew an average
yield of 0.011%, covered 3.95x. 
- Yields are mixed, down on the short end, up on the long end.
- Barclays say: 'Today could see a corrective tone around the long end prior to
the 10y auction (JB348) following ranged trade in USTs overnight. However, we
expect the market to reverse course on solid auction results with participants
buying back, especially in the 10y sector. We expect the auction to clear
smoothly assuming yields near current levels (WI close on 2 October: 0.075%).
Given the presumed upper bound of around 0.10% on 10y yields under the BoJ's
yield curve controls and the sector's cushion (6m) of 3.5bp, there should be
little downside concern at yields of 7bp or higher and we would expect a certain
amount of demand at that level.'
- Results due at 0435BST/1235JST

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