The Japanese MOF will today sell.......>

JGBS AUCTION: The Japanese MOF will today sell Y700bn of 30-Year JGB's. The MOF

last sold 30-Year debt on August 09, the auction drew cover of 4.679x at an

average yield of 0.850%, average price of 96.41, high yield of 0.853%, low price

of 96.35, with 73.4502% allotted at the high yield.

- The 30-Year yield has traded in a sub 5.0bp range since the most recent

auction, settling back towards 0.85%, following the BOJ inspired vol., last

operating in the middle of the aforementioned range.

- The lack of recent adjustment in BOJ Rinban ops covering 30-Year paper

continues to support prices, with a low chance of reduced purchases observed

during September, as the BOJ has adjusted its Rinban for calendar effects.

Seasonality points to strong purchases of super-long JGBs in September as FYH1

comes to an end.

- On a relative value basis the sector looks slightly more attractive than the

40-Year sector.

- Results due at 0435BST/1235JST.