PREVIEW: The lowest accepted price for 20-year JGBs for 0345 GMT auction is likely to be around 99.40, traders say. Latest issue carries coupon of 1.6%, lower than previous issue's 1.7%. "Given the solid 40-year auction and this week's slight upturn in yields, we believe the auction is likely to go smoothly," says Barclays Capital bond strategist Noriatsu Tanji, noting that "buying 20-year versus 10-year may not be a bad move" for investors seeking returns given recent declines in the benchmark 10-year yield and the possibility for market overheating. Lead June JGB futures are up 0.07 at 143.32.
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