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

JGBS AUCTION: The Japanese Ministry of Finance will today sell Y2.2tln of 0.10%

5-Year bonds, a reopening of issue #134.

- The MOF last sold 5-Year debt on January 16, the sale drew an average yield of

-0.084% at 100.91, a high yield of -0.082% at 100.90 with 8.975% of bids

allotted at the high yield, the sale was covered 5.24x.

- 5-year yields have edged lower since the end of January, after the BoJ upped

the size of its purchases in the 3-5 Year sector to promote a steepening yield

curve, with benchmark 5-year yields now circa 2.5bp softer than they were before

the BOJ increased the size of its Rinban ops in the sector.

- Barclays expect that the auction will "clear smoothly assuming yields near

current levels, as that level of yield is roughly around the average at the last

auction, which produced solid results, and investors appear comforted by the

announcement of BoJ Governor Kuroda's likely reappointment." Barclays also

believe that "the absence of particularly rich valuations on the curve should

also lend support."

- Results due at 0345GMT/1245JST.