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

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

20-Year JGB's, representing the opening of JB165.

- The MOF last sold 20-Year debt on June 26, the auction drew cover of 4.232x at

an average yield of 0.503%, average price of 99.93, a high yield of 0.508%, low

price of 99.85, with 5.5369% allotted at the high yield.

- Benchmark 20-Year JGBs have operated in a ~4bp range since the latest auction,

with longer dated Japanese paper becoming more attractive to domestic investors

than FX-hedged U.S. Tsys, which has pushed yields lower. Benchmark 20-Year

yields now sit around the middle of their aforementioned recent range at ~0.49%.

- Daiwa believe that "the 20-Year sector lacks attraction relative to the yield

curve or swaps but there doesn't seem to be any bias in positions and there is a

possibility that investors may be attracted to the new issue, or at least more

so than they would be to a re-opened one."

- Results due at 0435BST/1235JST