JAPAN AUCTIONS 1,000 BILLION YEN SHORT-TERM PAPER
Japan's Finance Ministry auctioned 1,000
billion yen worth of tankoku, six month debt-financing paper,
to roll over previously issued tankoku maturing on March 19, a
spokesman said.
    The last tankoku auction, on February 12, produced a record
low yield of 3.383 pct, reflecting expectation of a half point
cut in Japan's discount rate, he said.
    In the previous auction for 1,000 billion yen, four major
Japanese securities houses took 92 pct of the issue amount in
an attempt to meet strong demand from large institutional
investors, securities managers said.
    Securities managers said they expect the auction to go well
again this time as securities houses will try to expand their
inventories of tankoku on continuing good response from
institutional investors.
    Contrary to a projected low yield on tankoku, short-term
interest rates have been resisting a fall on growing demand for
funds ahead of the March 31 financial year-end, they said.
    The Bank of Japan has been trying to dampen money market
rates to make the latest discount rate cut effective, but so
far in vain, dealers said.
    The auction results will be announced tomorrow.
 REUTER
