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

JGBS AUCTION: The Japanese Ministry of Finance (MOF) will today sell 400bln of

40-Year JGB's.

- The auction will represent the opening of #JL11.

- The MOF last sold 40-Year debt on March 27, the auction drew cover of 3.190x

at a high yield of 0.885%, low price of 100.49, with 20.6239% allotted at the

high yield. - Benchmark 40-Year paper is trading ~1.5bp richer than it was

around the time of the previous auction, but operates a little over 4.0bp off of

the recent cycle lows seen in April.

- Barclays expect the auction "to clear without a hitch given the lingering JPY

appreciation pressures and the expected month-end extension by pension funds, we

believe the auction is likely to spur a certain level of demand. Whether life

insurers return passively into JGBs, as suggested by their FY18 investment

plans, will be one focus."

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