The Japanese Ministry of Finance will today....>

JGBS: The Japanese Ministry of Finance will today sell Y2.2tln of 0.10% 2-Year

bonds, the bonds will mature on 15 March 2020.

- The MOF last sold 2-Year debt on January 30, the sale drew an average yield of

-0.130% at 100.463, a high yield of -0.129% at 100.460 with 46.1768% of bids

allotted at the high yield, the sale was covered 5.022x.

- 2-year yields have edged lower since the end of January, after the BoJ upped

the size of its purchases in the nearby 3-5 Year sector to promote a steepening

yield curve. Benchmark 2-year yields are now circa 2.5bp softer than they were

at the end of January.

- Barclays expect the auction "to clear smoothly assuming yields near current

levels (WI close on 26 February: -0.145%). However, those yields are lower than

the average at the last auction (-0.130%) and relative valuations are not

particularly cheap, suggesting it may be difficult to expect much more than

foreign investor demand for USD ASW."