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

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.