JAPAN BROKERS SEEK 10 YEAR GOVERNMENT BOND AUCTION
Japanese securities houses have asked the
Finance Ministry again to consider introducing auctions of
10-year government bonds, securities sources said.
    Finance Ministry officials declined comment but said the
Ministry has been aware of growing calls from securities houses
for 10-year bond auctions.
    Japanese securities houses also may allow foreign brokers
to underwrite more 10-year bonds from April. Four U.S. Banks
are expected to receive Finance Ministry approval in late April
to operate securities subsidiaries in Japan as long as they
hold no more than 50 pct of the capital, bankers said.
    These firms are likely to join the syndicate, which will
increase the number of participants in the 10-year government
bond primary market, securities managers said.
    Each of the 17 current foreign securities houses in the
syndicate underwrites 0.07 pct of each issue, they said.
    In order to expand participation by foreigners, the
syndicate must either expand the securities industry's 26 pct
share or introduce auctions to the primary market, they said.
    Local brokers have requested the head of the syndicate, now
Fuji Bank Ltd, to increase their share to 30.7 pct but banks
oppose any cut in their 74 pct share, bankers said.
 REUTER
