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

JGBS AUCTION: The Japanese Ministry of Finance (MOF) will today auction Y400bln

of 0.10% 10-Year inflation linked JGB's, a reopening of issue #22 - the 3rd

reopening of this issue. The reference Consumer Price Index is the core CPI

print from Dec 2016 at 99.8.

- In a note Bank of America point out "index ratio for 8 February, the issuance

date, is 1.00896. With the rise of the core CPI, the BEI has exceeded 0.6%, but

we believe it still has upside room."

- The MOF last sold inflation linked JGB's on 5 October 2017, the sale drew an

average yield of -0.361% and was covered 3.10x.

- Supply and demand conditions are tight in the inflation linked zone, the next

linker auction will be in May 2018, between now and then around 50% of this

issue will be taken up by either the BoJ or the GPIF. Inflation has been on a

gradual upward path, but remained subdued. Inflation breakevens have risen above

0.60% and at 0.604% currently are the highest since late 2016. Despite the

upside breakevens are subdued on a global comparative basis. While further

upside is expected, a stronger yen poses risks. Results due at 0345GMT/1245JST.