GOVERNMENT STOCK.
RETURN TO INVESTORS.
STEADY DECLINE REVEALED.
Movements in the prices of New Zealand Government securities as reflected in the return to investors arc graphica.ly disclosed in the Reserve Bank s statistical summary, which has just been issued.
Two years ago the 1953-57 issue was selling at £9 below par and at 3% per cent was yielding 4.25 per cent. By January last the yield was down to 4 per cent and during the year there has been a steady appreciation in all Government stock, so that by November the return (calculated on redemption at the first optional maturity date) had been reduced to 3.10 per ecnt. Similarly, with the 1943-46 issue, tlio market price has risen from £9S 5/ two years ago to £ 103 10.' before the close of business this month. The gradual reduction in the yield for this stock this year is shown bv the following monthly figurcs:—4.o2. 3.07. 3.34 , 3.00, 3.24 , 3.41, 3.20, 3.02. 2.82. 2.74 . 2.88.
The return on the issue was 4.20 in January. 1039. 4.06 last January and by November was down to 3.41.
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Bibliographic details
Auckland Star, Volume LXXI, Issue 309, 30 December 1940, Page 2
Word Count
182GOVERNMENT STOCK. Auckland Star, Volume LXXI, Issue 309, 30 December 1940, Page 2
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