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

JGBS: The Japanese Ministry of Finance (MOF) will today sell Y2.0tn of 5-Year

JGB's, representing a reopening of JB135.

- The MOF last sold 5-Year debt on May 17, the auction drew cover of 4.224x at

an average yield of -0.103%, average price of 100.99, a high yield of -0.101%,

low price of 100.98, with 33.7643% allotted at the high yield.

- Benchmark 5-Year yields sit around 1.0bp lower than they did at the time of

the most recent 5-Year auction. It is also worth noting that the BOJ has trimmed

the size of its 3-5 Year Rinban operation by Y30bn to Y300bn.

- Short covering demand looks less prevalent this time out. 5-Year paper looks

cheap against 7-10 Year paper, but expensive against the shorter dated 2-3 Year

paper.

- Results due at 0435BST/1235JST