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

JGBS AUCTION: The Japanese Ministry of Finance (MOF) will today sell Y1.0tln of

0.5% 20-Year JGB's.

- The auction will represent a reopening of #JL164.

- The MOF last sold 20-Year debt on April 19, the auction drew cover of 3.695 at

an average yield of 0.500%, average price of 100.00, a high yield of 0.505%, low

price of 99.90, with 3.4926% allotted at the high yield.

- The line's outright yield is ~4bp higher than it was around the time of the

previous auction, which was poorly received.

- Some are worried about the uptick in US Tsy yields, which could garner demand

for the upcoming auction owing to the stability afforded by the BoJ's YCC

control. The auction should pass more smoothly than the most recent instance on

the back of the higher outright yield.

- The sector also offers a decent enough amount of carry & roll.

- Results due at 04:35BST, 12:35JST