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Short-term money market changes

Because all traders in the short-term money market are tied to. the interest on deposit regulations, trading patterns had predictably changed, according to Mr V. G. Duffy, of Rediscount Acceptance (N.Z.), Ltd. The official market had slowed as some institutions

such as building societies and savings banks did not have much cash, but the unofficial market was getting busier. As TCD's were in a lower interest stratum, more and more traders were turning to

the commercial bill market, where the 90-day interest rate' was around 17.55 per ‘ cent. They would buy an ordinary bill, let it age a few months and then sell it to get a better yield. The deposit rate for 90 days was 14 per cent, and as a result some deposit money was finding'its way into the bill market.

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Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/CHP19820927.2.158.5

Bibliographic details

Press, 27 September 1982, Page 26

Word Count
137

Short-term money market changes Press, 27 September 1982, Page 26

Short-term money market changes Press, 27 September 1982, Page 26