Govt stock sells well

Press, 31 August 1984, Page 2

Govt stock sells well

By

MICHAEL HANNAH

in Wellington The Government succeeded in filling its latest tender of Government stock yesterday, drawing the $250 million it sought from big institutions. A very slight reduction in interest was also achieved, though the movement is so slight as to be unlikely to ease interest rates throughout the market. Nevertheless, the success of the tender points further to the stabilising of interest rates at their present post-de-valuation levels.

All three stocks up for tender were filled, and bids were well over the amount offered.

A rate of 15.49 per cent was struck on a conventional stock worth $lOO million, and maturing in May, 1990. This compared with a rate of 15.5 per cent in the last tender. 1 Another conventional stock attracted a rate of 15.25 per cent for $lOO million worth of stock maturing longer-term, in May, 1994. This matched a similar long-term stock in the last tender.

The only inflation-linked stock, smaller than previous indexed stocks at only $5O million, attracted a rate of 6 per cent, the same as had been struck in the last tender. Bids received totalled $446.2 million. The Government accepted $250 million.