The Japanese Ministry of Finance (MOF) will....>

JGBS: The Japanese Ministry of Finance (MOF) will today sell Y2.2tln of 0.1%

10-Year JGB's.

- The auction will represent a reopening of #JB350.

- The MOF last sold 10-Year debt on April 03, the auction drew cover of 4.160 at

an average yield of 0.032%, average price of 100.67, a high yield of 0.033%, low

price of 100.66, with 4.0302% allotted at the high yield.

- 10-Year yields are ~2bp higher than they were heading into the most recent

auction, but the sector doesn't look particularly attractive in outright or

relative value terms which could cause some issues at today's supply. The line

looks fair on a carry & roll basis.

- Foreign bonds have become less attractive in FX hedged terms (notably US

Tsys), which could divert domestic accounts to JGBs, although lifers have

indicated a need to pursue larger unhedged foreign bond holdings.

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