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

JGBS AUCTION
JGBS AUCTION: The Japanese Ministry of Finance (MOF) will today sell Y1.0tln of
20-Year JGB's.
- The MOF last sold 20-Year debt on February 22, the auction drew cover of 4.444
at an average yield of 0.561%, average price of 100.68, a high yield of 0.563%,
low price of 100.65, with 56.8524% allotted at the high yield.
- Benchmark 20-Year yields are around 2bp softer than they were heading in to
February's supply, with outright yields now looking a tad expensive.
- It would be fair to say that the sector appears somewhat expensive in Z-spread
& ASW terms, although this auction could provide an opportunity for those
looking to initiate steepeners on the back of the recent adjustment to BoJ
Rinban ops.
- The carry & roll aspect of the 20-Year sector is particularly attractive and
could spur demand heading in to FY end, alongside the traditional FY end "window
dressing".
- Results due at 0345GMT/1245JST.
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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